Indonesia to Host the 2025 International Sustainable Development Forum: Driving Green Investment as a Core Engine of Economic Growth

Indonesia will showcase its role as a regional and global hub for green investment during the 2025 International Sustainable Development Forum, scheduled to take place from October 10 to 11, 2025, at the Jakarta International Conference Center. This forum aims to serve not only as a discussion platform but also as a bridge connecting global visions with concrete actions. It will gather government representatives, business leaders, and international partners to accelerate the transition to an inclusive and sustainable green economy. Under the theme “Investing in a Resilient, Sustainable, and Prosperous World,” the forum reflects Indonesia’s strategic direction in positioning green investment as a core driver of future economic growth.

Indonesia’s participation in this global dialogue emphasizes its role as a bridge between the interests of both developed and developing nations, while maintaining local relevance and global influence. The country’s strategic position as a green investment focal point is supported by numerous complementary factors, including its vast renewable energy potential of approximately 3,700 gigawatts, encompassing sources such as solar, hydropower, wind, geothermal, and biomass. This potential is further reinforced by the ambitious blueprint outlined in the 2025-2034 Electricity Supply Business Plan and the commitment to achieve net-zero emissions by 2060.

Indonesia has also demonstrated its infrastructure and technological maturity through strategic projects like the Cirata Floating Photovoltaic Power Plant and green hydrogen development. Furthermore, global cooperation mechanisms like the “Just Energy Transition Partnership” underscore Indonesia’s standing as a trusted strategic partner in the decarbonization agenda. On the policy front, new regulations such as the Minister of Energy and Mineral Resources Regulation No. 5 of 2025 continue to enhance the investment environment through legal certainty and renewable energy incentives.

With its prime geographical location along the equator, Indonesia offers promising green investment opportunities that are not only economically feasible but also carry geopolitical significance. This multilateral meeting will serve as an important platform for connecting global investors with mature sustainable development projects. Through the “Project Recommendation for Immediate Investment” initiative, a variety of local projects meeting sustainability standards will be presented, with a clear goal of attracting capital while ensuring that investments support clean energy transitions, green economic growth, and inclusive improvements in living standards.

Electrification of Transportation as a Catalyst for Sustainable Economic Growth

During the forum, Indonesia’s Minister of Infrastructure, Agus, highlighted the electrification of transportation as a vital measure for promoting sustainable economic growth in Indonesia. He noted that transitioning from fossil fuels to electric vehicles offers multiple benefits, including reduced oil imports, energy subsidy savings, and modernization of the national transportation system. As of August this year, Indonesia has sold over 120,000 electric vehicles, achieving a market share of approximately 10%. The country is currently constructing several new factories, some of which are expected to commence full operations next year. However, he emphasized that electrification should not stop at private vehicles, as the greater challenge lies in decarbonizing public transport, logistics, and freight systems.

In addition to electrification, Agus stressed the importance of creating economic value through downstream industrialization. Converting raw materials into high-value products is key to transitioning Indonesia from quantity-based exports to value-driven outputs. He stated, “The success of nickel downstreaming has transformed Indonesia’s export structure and created greater national value. We are now targeting other potential commodities such as copper, bauxite, palm oil derivatives, and seaweed to replicate this success.” Agus reiterated the necessity of ensuring cleaner production processes, stating that the government is continuously pushing for industrial decarbonization through energy efficiency improvements, digital transformation, hydrogen technology reserves, and carbon capture applications.

Regarding investment, he emphasized the need to establish partnerships between the government and the private sector. According to data from the National Development Planning Agency, Indonesia requires approximately $650 billion (around 10,700 trillion IDR) in infrastructure investment to achieve its 8% economic growth target, with about $190 billion needing to come from private capital. Meanwhile, Indonesia’s Minister of Investment, Rosan, announced that the “Waste to Energy” project will launch in early November, aiming to be implemented in 33 cities in Indonesia. The initial phase will roll out in 10 cities, including Tangerang, Jakarta, Bandung, Yogyakarta, Semarang, Surabaya, Bali, and Makassar. In addition to generating clean electricity, this project is expected to improve environmental quality and create job opportunities. Within the next two years, major city waste will be converted into electricity, with the Danantara-participated waste-to-energy project capable of processing 1,000 tons of waste daily, which is anticipated to simultaneously boost domestic employment.

Water Resource Investment Needs Strengthening to Address Global Shortages

Investment in water resources has become a critical issue that requires strengthening to address the substantial global funding gap. At the forum, the UN Secretary-General’s Special Envoy for Water Resources, Retno, revealed that the annual investment needs for water supply and sanitation facilities range from $600 billion to $1 trillion, while current actual annual expenditures are only about $300 billion to $400 billion. According to the World Bank, developing countries allocate just 0.5% of their GDP to water infrastructure. Retno pointed out that nearly 91% of annual expenditures in the water sector are still borne by the private sector.

She analyzed that the water resources sector is often perceived as high-risk and low-return, but this perception is misguided, as water investments can yield significant benefits. The former Indonesian Foreign Minister emphasized that investments in water resources not only drive economic growth but also have profound impacts on public health, education accessibility, gender equality, and climate resilience. Using Africa as an example, she noted that every $1 invested in water resources can generate $7 in returns. She reiterated the need to continue strengthening water resource investments: “Concrete measures include promoting blended financing models while ensuring public interests are safeguarded.”

Retno also announced that the investment topic will be a core agenda at the upcoming UN Water Conference to be held in December 2026 in the UAE and Senegal. During her 11 months as UN Water Affairs Special Envoy, she noted that the water resources topic is gradually being integrated into high-level political agendas, and the commitment to global coordinated action and accelerated implementation is strengthening, but current progress is still insufficient to address the numerous challenges faced in the water sector.

Despite the significant challenges in water development, Retno believes these obstacles can be overcome. She emphasized that the world today possesses the knowledge, technical tools, and funding conditions necessary for problem-solving. What is now needed is to harness global political will, maintain policy coherence, and take concerted action.

This forum embodies the core narrative of “Dialogue Today, Co-Creating the Future.” Guided by the spirit of “From Global Forum to Collective Action,” Indonesia demonstrates that dialogue can translate into commitments and that visions can be realized through cross-border collaboration. On this platform, the seeds of cooperation are being sown, with the hope that they will grow into long-term partnerships that benefit humanity and the planet. Indonesia is not only ready but also possesses the credentials to be at the center of green investment—promoting sustainable development, connecting local opportunities with global agendas, and ensuring a cleaner and fairer future through collective efforts.