Indonesia is entering a critical phase in its transition toward a low-carbon and climate-resilient economy, with its Enhanced Nationally Determined Contributions (ENDC) setting a bold target of reducing up to 43.2% greenhouse gas emissions by 2030 with international support. Achieving this ambition requires unlocking an estimated USD 285 billion in investment between 2020 and 2030, far beyond the fiscal capacity of the public sector. The current landscape of sustainable finance in Indonesia, however, remains fragmented. It is characterized by institutional silos, inconsistent regulatory signals, and limited private capital mobilization. 

To address this challenge, the Government of Indonesia has established the Sustainable Finance Committee (SFC) under Law No. 4/2023 on the Development and Strengthening of the Financial Sector. The SFC is mandated to align fiscal, monetary, and regulatory authorities under a unified institutional platform aimed at mobilizing climate finance, advancing policy coherence, and ensuring systemic governance of climate-related financial risks. 

The Green Finance Institute, in collaboration with Climate Policy Initiative, and with input from the Fiscal Policy Agency of Indonesia’s Ministry of Finance, Indonesia’s Financial Services Authority (OJK), Central Bank of Indonesia, and financial sector stakeholders, launched the White Paper on Enhancing Sustainable Finance Governance.

This White Paper provides a strategic and practical guidance for establishing the SFC as Indonesia’s central policy synchronisation and governance platform for driving the implementation of the sustainable finance agenda. The document is structured around three foundational pillars: (1) governance architecture, (2) policy alignment and optimization, and (3) sectoral coalition development. 

READ The full WHITE PAPER