The forum concluded with $17.4 billion worth of sustainability-linked investment pledges, according to the Investment Ministry. A total of 18 memoranda of understanding (MoUs), investment commitments, and letters of intent were signed, spanning sectors from the blue economy and waste-to-energy to industrial decarbonization.

A notable highlight was the growing investor enthusiasm for Danantara’s nationwide waste-to-energy program, which aims to turn Indonesia’s mounting waste problem into a renewable energy source. The sovereign fund plans to roll out projects in 33 cities, prioritizing 10 urban centers including Jakarta. The program will be financed partly through Patriot Bonds and supported by state utility PLN, which will purchase the generated electricity.

Kadin’s $3.8 Trillion Net-Zero Investment Roadmap

At the forum’s opening, Indonesian Chamber of Commerce and Industry (Kadin) chairman, Anindya Bakrie, unveiled projections of up to $3.8 trillion in cumulative investment opportunities tied to the country’s 2050 net-zero target. The figure, equivalent to roughly 4.3 percent of Indonesia’s cumulative GDP, underscores the scale of transformation required to decarbonize Southeast Asia’s largest economy. Bakrie outlined four priority areas where private-sector leadership will be crucial:

1. Climate and net-zero strategy alignment,
2. Capital mobilization,
3. Carbon markets, and
4. Skills development.

He emphasized that Indonesia’s emissions profile is unique, around 30 percent originates from land use and forestry, highlighting the need for land-based carbon solutions alongside industrial decarbonization.

Unlocking Carbon Market Potential

Indonesia is estimated to produce up to 13.4 billion high-quality forestry carbon credits between 2024 and 2050, positioning the country as a potential net exporter of forestry offsets. Additionally, its vast coastlines could generate enough blue carbon credits from mangroves and seagrasses to offset around 11 million tonnes of CO₂ by 2050 at an average cost of only $11 per tonne. Industry leaders at IISF called for greater regulatory alignment and market access to attract global capital toward verified carbon projects.

Challenges Ahead

Despite growing optimism, Indonesia faces a tight timeline to achieve net-zero by 2050. The government recently delayed its peak emissions target from 2030 to 2035, a move that experts warn could complicate the pathway to carbon neutrality by 2060. Renewable energy deployment also lags expectations: the national target for 2025 was revised down from 23 percent to between 17 and 19 percent of the electricity mix.

Conclusion: A Defining Moment for Indonesia’s Green Leadership

The IISF 2025 outcomes reflect a decisive step in Indonesia’s transition from planning to delivery. With $17.4 billion in immediate pledges and trillions in long-term opportunities, the country is emerging as a regional gravity centre for sustainable investment. Yet sustaining this momentum will require credible policy follow-through, a functioning carbon market, and the scaling of renewable and waste-to-energy projects across the archipelago.

          

Sources:

• Eco-Business. “Indonesia International Sustainability Forum 2025: Indonesia emerges as a regional gravity centre for green investment.” October 9, 2025. https://www.eco-business.com/press-releases/indonesia-international-sustainability-forum-2025-indonesia-emerges-as-a-regional-gravity-centre-for-green-investment/
• Jakarta Globe. “Indonesia Secures $17.4 Billion Sustainability Investment Pledges.” October 12, 2025. https://jakartaglobe.id/business/indonesia-secures-174-billion-sustainability-investment-pledges
• The Jakarta Post. “Kadin projects $3.8t in net-zero investments by 2050.” October 12, 2025. https://www.thejakartapost.com/business/2025/10/12/kadin-projects-3-8t-in-net-zero-investments-by-2050.htm