Indonesian Political, Business & Finance News

ESG Trends Strengthen, IIF Focuses on Sustainable Infrastructure

| | Source: REPUBLIKA Translated from Indonesian | Infrastructure
ESG Trends Strengthen, IIF Focuses on Sustainable Infrastructure
Image: REPUBLIKA

Sustainable infrastructure financing is increasingly becoming a focus amid the push for energy transitions and pressures from climate risks. Financial institutions are directing their portfolios towards low-carbon projects, taking into account sustainability aspects and long-term stability.

PT Indonesia Infrastructure Finance (IIF) is strengthening its role in sustainable infrastructure financing through participation in the 5th Annual Sustainability Week Asia forum organised by Economist Impact in Bangkok, Thailand, on 25–26 March 2026.

IIF’s President Director, Rizki Pribadi Hasan, stated that the participation in the forum aims to expand global collaborations and reinforce the company’s role in supporting low-carbon development.

“IIF’s participation in this forum is a momentum to solidify our role as a catalyst for sustainable infrastructure development, while strengthening collaborations to support the low-carbon development agenda and climate risk responsiveness in Indonesia,” said Rizki in a press release on Monday (6/4/2026).

IIF’s Finance Director, Eri Wibowo, explained that financing is not only oriented towards economic growth but also considers climate risk management as well as environmental and social impacts.

IIF allocates financing to renewable energy projects and infrastructure resilient to climate change. These projects are assessed to have more stable long-term cash flows despite requiring larger initial investments.

The strengthening of ESG strategies is also carried out through cooperation with Danareksa and the Indonesia Export Financing Agency (LPEI) to promote sustainable productive sector financing.

On the other hand, international investor support for sustainable financing is experiencing an increase. This is reflected in the US$30 million investment from FinDev Canada to IIF in early 2026.

In terms of performance, IIF recorded a net profit of Rp185 billion in 2025, growing 51.2 per cent compared to the previous year. Total assets also increased 5 per cent annually to Rp15.4 trillion.

IIF assesses that the transition to a low-carbon economy requires a balance between financing expansion and risk management. This approach is considered important to maintain business sustainability while supporting long-term economic resilience.

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