The large business opportunities from the sustainability agenda do\nnot automatically make green projects easy to finance. Project\nreadiness, risk profiles, cash flow certainty, and the complexity of\nfinancing structures are important factors that determine whether\nsustainable transition opportunities can be realised.<\/p>\n
Bank DBS Indonesia assesses that these conditions are driving a shift\nin the role of banking. Banks are no longer sufficient as providers of\ncapital, but also need to help companies prepare projects, determine\nfinancing structures, and find solutions capable of bringing together\nsustainability targets with commercial viability.<\/p>\n
These findings are part of research by Bank DBS Indonesia with\nTenggara Strategics titled The Sustainability Shift: Indonesia\u2019s\nIndustrial Landscape in Five Key Sectors, Opportunities and Risks. The\nresearch examines five strategic Indonesian sectors: energy and\ninfrastructure, technology, media and telecommunications, food and\nagribusiness, health and pharmaceuticals, and metals and mining.<\/p>\n
Director of Institutional Banking Group PT Bank DBS Indonesia\nAnthonius Sehonamin said the shift towards sustainable business requires\na different approach in each sector. \u201cHowever, the shift towards more\nsustainable business does not have a single path in every sector.\nThrough this research, Bank DBS Indonesia seeks to provide more targeted\ninsights regarding changes occurring in various strategic sectors, as\nwell as opportunities and challenges that businesses need to\nanticipate,\u201d Anthonius said on Thursday (20\/8\/2026).<\/p>\n
In the research, DBS emphasises that sustainability opportunities\nmust be translated into projects with technical and financial readiness.\nTherefore, financing instruments need to be adjusted to the\ncharacteristics of the sector and the risks faced.<\/p>\n
Bank DBS Indonesia provides a number of instruments, ranging from\nsustainability financing, sustainability-linked financing, structured\nand blended finance, business lending, trade finance, to supply chain\nfinancing. These instruments are complemented by advisory services to\nhelp companies design and execute business transformation.<\/p>\n
In the energy and infrastructure sector, for example, electrification\nneeds create significant opportunities as well as new investment\nrequirements. Indonesia\u2019s electricity consumption is projected to\nincrease from around 300 TWh in 2024 to more than 1,800 TWh in 2060.\nMeanwhile, renewable energy potential reaches around 3,687 GW, but its\nutilisation is still less than 0.5 percent.<\/p>\n
Transmission barriers and project bankability are issues that must be\naddressed for this potential to be realised. Bank DBS Indonesia said it\nhas supported financing for renewable energy projects, including\ngeothermal, as well as green financing for the electrification ecosystem\nof two-wheeled electric vehicles and battery swap infrastructure.<\/p>\n
In the technology sector, the development of AI is also changing\ninvestment needs. Growth in the connectivity-based telecommunications\nsector is slowing, but the digital economy continues to expand.\nIndonesia\u2019s total digital economy GMV is estimated to reach around 99\nbillion US dollars in 2025.<\/p>\n
These changes are driving demand for cloud, cybersecurity, and data\ncentres. Chairman of the Indonesia Data Center Provider Organization\n(IDPRO), Hendra Suryakusuma, assesses that data centres have the\npotential to become a new growth engine.<\/p>\n
\u201cThe momentum of AI growth makes data centres a new growth engine for\nIndonesia\u2019s digital ecosystem. However, the availability of renewable\nenergy and future policy certainty will be just as important as the size\nof the market potential in determining investment decisions,\u201d Hendra\nsaid.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/financing-key-to-green-transition-banks-shift-role-to-strategic-partner-1787309608", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }