Indonesia advances green investment strategy to support economic growth
The country is developing green industries, financing mechanisms and incentives to accelerate the energy transition
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Photo source: pcess609 / iStock
Indonesia has begun implementing an investment strategy centred on green industries as part of efforts to support economic growth and advance the energy transition. This was reported by ANATARA.
Dendy Apriandi, Director of Investment Deregulation at the Ministry of Investment and Downstream Industry/BKPM, said the use of green energy is becoming an increasingly important factor in gaining access to international markets.
According to Apriandi, Indonesia’s investment policies need to incorporate environmental, social and governance (ESG) considerations. This approach is intended to strengthen the country’s position in the global green economy and support the development of sustainable industries.
The government is working to establish an ecosystem for green investment, with priorities including the energy transition, a circular economy, green transport and the adoption of environmentally friendly technologies. These areas are expected to contribute to the development of new investment opportunities and support long-term economic growth.
Indonesia is also developing green financing mechanisms aligned with ESG principles, including green financing and carbon pricing. The government is strengthening fiscal and non-fiscal incentives to support green investment while establishing mechanisms for their implementation.
The green economy forms one of five key economic strategies under Indonesia’s 2025–2029 National Medium-Term Development Plan, which targets 8 per cent economic growth. Investment is expected to play a central role in accelerating economic expansion and supporting the achievement of this target.
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