HSBC targets Indonesia for $4bn green projects

Indonesia is a key target for HSBC China’s new $4 billion credit facility (approximately Rp65.2 trillion) to support low-carbon project investments across ASEAN. The financing targets renewable energy, electric transport, data centres, and artificial intelligence (AI), amid rising demand for clean energy investment in Indonesia to meet 2030 targets. The move aligns with strengthened green economic cooperation between ASEAN and China through the ASEAN-China Free Trade Area (ACFTA) 3.0 Upgrade Protocol signed in Kuala Lumpur in October 2025. Stuart Rogers, HSBC Indonesia’s President Director, stated on Thursday (28 May 2026): ‘Indonesia’s energy transition represents one of the region’s largest clean energy investment opportunities, with the scale of financing required to meet 2030 targets being highly significant.’ ‘HSBC is strategically positioned to connect Indonesia’s ambitions with global clean energy companies, including those from China, which possess the technology, expertise, and capacity to deliver them. This credit facility strengthens our ability to do so,’ Rogers added. The Sustainability and Transition Credit Facility provides funding for eligible Chinese companies across sectors including renewable energy, electric transport, data centres, and AI. China’s expansion in clean technology sectors is steadily growing. The country accounts for around 47% of global clean technology exports and approximately two-thirds of global solar and battery exports. Global electric vehicle sales are projected to reach 26 million units by 2026, while global data centre electricity consumption is expected to nearly double from 485 terawatt-hours (TWh) in 2025 to 945 TWh by 2030. Approximately 91% of wind and solar projects commissioned in 2024 were cheaper than the world’s cheapest fossil fuel alternatives. Indonesia’s energy transition funding needs are also projected to rise. Under the Comprehensive Investment and Policy Plan (CIPP) of the Just Energy Transition Partnership (JETP), the country’s clean energy investment requirements are estimated to reach $97 billion (approximately Rp1.5821 trillion) by 2030. Indonesia’s 2025 Power Supply Business Plan (RUPTL) targets the development of 42,569 megawatts of new renewable energy capacity by 2034. This target is more than double the previous plan and introduces energy storage targets for the first time. Furthermore, ASEAN leaders at the 48th ASEAN Summit in the Philippines reaffirmed their commitment to accelerating the development of the ASEAN Power Grid to create a more integrated and sustainable regional energy system.