Indonesia
2024
Integrating sustainable finance: A nation in transition
June 20, 2024
Ritz Carlton Jakarta, Mega Kuningan
Synopsis
For Asia to decarbonise, it must look to Indonesia. The country, responsible for nearly 2 percent of global carbon emissions, ranks as the third-largest coal producer. Despite recent government pledges to phase out fossil fuels, progress on its energy transition remains challenging.
Indonesia’s reliance on coal for domestic energy and as a revenue source poses significant obstacles, and achieving a just energy transition while maintaining economic stability is a complex undertaking.
The country already grapples with climate change consequences: Jakarta, sinking due to land subsidence, rising sea levels, and intense rainfall, exemplifies the urgency. The country plans to relocate its capital to East Kalimantan Nusantara within 25 years.
Amid a new leadership transition, all eyes are on how Indonesia will establish the robust policy frameworks required for its sustainable transition and for it to achieve its aspiration to become a developed nation by 2045.
What will it take for Indonesia to attract the capital it needs for this transition, while safeguarding its rich biodiversity and protecting livelihoods? Unlocking capital for sustainability 2024: Indonesia will convene leaders and decision-makers across policy, business and finance to discuss developments in the country’s journey, and the challenges and opportunities they will face in the years ahead.
Agenda
13:30
Registration
Speakers
Moderators
14:00
Welcome remarks
14:05
14:15
14:25
Panel discussion: The economic opportunities and challenges of Indonesia's energy transition
Mobilising capital and implementing progressive policies will be key to accelerating Indonesia’s energy transition.
While the nation has joined the United Nations-led Energy Compacts, committing over US$122 billion to affordable and clean energy and to increase the share of renewable energy to 23 per cent before 2030, the amount is far from enough to fund the transition.
The country will require investments of up to US$272 billion to meet its interim 2030 goals, according to the United Nations – dwarfing the US$20 billion Just Energy Transition Partnership (JETP) deal announced in 2022.
Unless fossil fuel subsidies are reduced and clear and consistent regulatory frameworks for renewable energy developments under new leadership are put in place, the country won’t be able to meet its energy transition targets, nor increasing demands from companies for clean energy investments.
With Indonesia looking to relocate its capital to East Kalimantan Nusantara to avoid climate-induced impacts, transition to renewables will also help the nation to ensure long term economic stability and prosperity.
How can Indonesia find the necessary capital to fund its energy transition and reduce its impact on the climate – all while balancing the needs of its economy and people?
Speakers
15:10
Panel Discussion: Safeguarding Indonesia’s natural resources and biodiversity
Indonesia is one of the world's most biodiverse countries.
However, the nation is facing increased habitat loss and degradation due to human-led deforestation, urbanisation, and climate-induced forest fires.
The nation’s rainforests contain 10 per cent of the world's known plant species and 12 per cent of mammal species, but are facing rapid loss, driving numerous species to the edge of survival.
While deforestation has slowed amid government-led moratoriums on clearing primary forests and the issuing of licenses for new oil palm plantations, the nation still lost 104,000 hectares of forest from 2021 to 2022.
In the face of climate change and rapid deforestation, how can Indonesia prioritise its natural resources and its rich biodiversity? What new policies, strategic investments and financial models can conserve and restore nature? How can biodiversity financing be leveraged to achieve net zero?
Speakers
16:00
Closing remarks
16:05
Networking session
Speakers
Moderators
Partners
In partnership with
Strategic partner
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Jakarta Investment Festival 2024
Jakarta Investment Festival is an event or platform designed to facilitate discussions, networking, and collaboration among investors, government officials, industry leaders, and other stakeholders interested in investment opportunities in Jakarta, Indonesia.
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Siemens Energy
Located in 90 countries, Siemens Energy operates across the whole energy landscape. From conventional to renewable power, from grid technology to storage to electrifying complex industrial processes. Our mission is to support companies and countries with what they need to reduce greenhouse gas emissions and make energy reliable, affordable, and more sustainable. Let’s energize society.
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Supporting partner
Knowledge partner
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Centre for Asian Philanthropy and Society (CAPS)
Established in 2013, the Centre for Asian Philanthropy and Society (CAPS) is committed to improving the quantity and quality of philanthropic giving throughout Asia. Our mission is to improve the social investment sector in Asia by identifying and disseminating best practices, models, policies and strategies that can contribute to positive system change.
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IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
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Outreach partner
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Asia Investor Group on Climate Change (AIGCC)
Asia Investor Group on Climate Change (AIGCC) is an initiative to create awareness and encourage action among Asia’s asset owners and asset managers about the risks and opportunities associated with climate change and low-carbon investing.
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