Indonesia-GGGI to mobilize US$2 billion in green investment by 2030

 Indonesia's National Development Planning Ministry and the Global Green Growth Institute (GGGI) are preparing to mobilize US$2 billion in green investment by 2030.

The Green Indonesia Future Initiative (GIFT) partnership reflects a commitment that development interventions not only encompass current interests, but also the future and future generations, according to the ministry’s Deputy for Food, Natural Resources and Environment Leonardo A. A. Teguh Sambodo.

“Green economic transformation is not an option, but a necessity to ensure Indonesia's development continues to grow while maintaining environmental sustainability and public welfare," Teguh said at a media briefing in Jakarta on Tuesday.

Indonesia has partnered with GGGI since 2013, realized through the Green Growth Program (GGP). This program has been implemented in three phases, with the final phase running from 2021 to 2025.

The partnership's contribution is measured by realized results, not direct implementation. It is estimated to have supported emission reductions equivalent to 183.54 million tons of CO2 and the creation of 271,095 green jobs.

Furthermore, approximately US$776.5 million in green investments have been mobilized across various sectors, from energy and urban areas to social forestry and the blue economy.

In the next phase, from 2026 to 2030, Indonesia and GGGI will soon launch the GIFT partnership, aiming for an ambitious target of more than double the investment value achieved in all previous phases.

GIFT focuses on three main roles: pioneering new financing models for Indonesia, supporting ministries and local governments in implementing supportive policies and practices, as well as opening access to global funding sources.

This initiative also encourages strengthening the capacity of policymakers to apply a green growth perspective to their daily decision-making.

"GIFT aims to provide opportunities to increase Indonesia's climate ambition while minimizing investment risks and expanding access to financing for bankable, high-impact green initiatives,” Rowan Fraser, GGGI Indonesia Country Representative, noted.

Going forward, this initiative is expected to encourage green job creation opportunities, strengthen energy security and support circular economy practices across various sectors.

It is also expected to mobilize green investment from various funding sources to become a supporting pillar of green growth that delivers concrete impacts on society.