Indonesia advances green investment to drive economic growth

Director of Investment Deregulation at the Ministry of Investment and Downstream Industry/BKPM Dendy Apriandi said green energy use is increasingly a key consideration when Indonesian products seek access to overseas markets, particularly in Europe.

Speaking at the BIG Strategic Forum 2026 in Jakarta on Tuesday, he said investment policies therefore need to incorporate environmental, social and governance (ESG) considerations to strengthen Indonesia’s position in the global green economy.

Indonesia needs to build an ecosystem supporting green investment, including faster energy transition, a circular economy, green transportation and adoption of green technologies, Dendy said.

The government is developing innovative green financing mechanisms aligned with ESG principles, including green financing and carbon pricing, to support the strategy.

It is also strengthening fiscal and nonfiscal incentives and disincentives by establishing fair mechanisms for their implementation, according to Dendy.

The green economy is one of five main economic strategies under the 2025-2029 National Medium-Term Development Plan, which targets eight percent economic growth, he said, adding that investment would be a key driver of faster economic expansion needed to achieve the government’s 8 percent growth target.

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Translator: Bayu Prasetyo