Panelists at the IISF session “Financing the Future: Green Investment in Indonesia’s Water & Waste Sectors”argued that green bonds, blended finance, and transition structures can lower project risk and make deals bankableat scale.
At the opening of the Indonesia International Sustainability Forum (IISF) 2025, Standard Chartered and the International Finance Corporation (IFC) made a coordinated case for mobilising private capital to finance water management and sustainable infrastructure in Indonesia—using green bonds, blended finance, and transition financing to de-risk projects and draw in institutional investors.
RELEVANT SUSTAINABLE GOALS
The Financing Gap Indonesia Must Close
Indonesia’s RPJMN 2025–2029 estimates US$625 billion (≈ Rp 10,000 trillion) in total infrastructure investment needs. Of that, about 35.6% is expected from the state budget (APBN) and 24.9% from regional budgets (APBD)—leaving a significant shortfall that, speakers said, must be filled by private-sector participation, public-private partnerships, and innovative financing mechanisms.
Panelists at the IISF session “Financing the Future: Green Investment in Indonesia’s Water & Waste Sectors”argued that green bonds, blended finance, and transition structures can lower project risk and make deals bankableat scale. They also stressed the need for clearer policy signals, standardised procurement, and stronger project preparation to crowd in long-term investors.
A Regional Opportunity With Indonesia at the Fore
The Southeast Asia Green Economy 2025 report—by Bain & Company, GenZero, Standard Chartered, Temasek, and Google—highlights up to US$50 billion a year in green investment opportunities across ASEAN through 2030. The report projects an additional US$120 billion to regional GDP and nearly 900,000 new jobs via integrated solutions in energy, water, waste, and transport.
For Indonesia, it flags water resilience, waste management, and the circular economy as high-potential areas to meet national sustainable infrastructure goals. It also calls for faster grid modernisation, expanded blended-finance platforms, and deeper public-private collaboration to close the remaining funding gap.
“Indonesia is at the forefront of the green transition in Southeast Asia. Increasing investment in water and waste management is not only essential for sustainable development, but also for resilience and quality of life,” said Donny Donosepoetro, CEO of Standard Chartered Indonesia, at IISF 2025.
By mobilising private capital through innovative finance and partnerships, he added, Indonesia can deliver long-term solutions that benefit people, the economy, and the environment. The path to a low-carbon, resilient economy will require scale, innovation, and collaboration:
“We are proud to partner with the Government of Indonesia, IFC, and our clients to develop financing solutions that make sustainable infrastructure projects more commercially viable. By opening access to private capital, we can help ensure Indonesia’s green transition delivers tangible economic and social impact.”
By mobilising private capital through innovative finance and partnerships, he added, Indonesia can deliver long-term solutions that benefit people, the economy, and the environment. The path to a low-carbon, resilient economy will require scale, innovation, and collaboration:
“We are proud to partner with the Government of Indonesia, IFC, and our clients to develop financing solutions that make sustainable infrastructure projects more commercially viable. By opening access to private capital, we can help ensure Indonesia’s green transition delivers tangible economic and social impact.”
The Policy Work That Unlocks Capital
Speakers underscored three enabling steps to accelerate investment into water and waste assets:
- Policy clarity that aligns sector road maps with capital-market instruments;
- Standardised procurement and transparent pipelines that cut transaction frictions;
- Robust project preparation to improve bankability and support blended-finance structures.
“Indonesia is at the forefront of the green transition in Southeast Asia. Increasing investment in water and waste management is not only essential for sustainable development, but also for resilience and quality of life,”
Indonesia’s infrastructure ambition is larger than public budgets alone. With Standard Chartered and IFCchampioning green bonds, blended finance, and transition mechanisms, the country is positioning private capital as a cornerstone of its water and waste build-out—linking de-risked projects to institutional demand, and turning a financing gap into an investment opportunity that advances national sustainability goals.
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