Indonesia is a critical market for climate solutions, with increasing public and private sector commitments to green growth, food security, and net-zero transitions.

Indonesia

• Indonesia is the world’s 4^th most populous country, with 288 million people and the largest economy in Southeast Asia.
• It is an archipelagic nation of 17,000+ islands, which shapes how infrastructure, logistics and supply chains operate.
• The country is undergoing rapid economic and digital transformation, with growing urbanisation, a large working age population, and increasing technology adoption.
• Indonesia is a resource-rich country, with large agricultural, forestry, mining, and marine sectors. It plays a pivotal role in global climate and sustainability outcomes due to its land area, forests, peatlands, energy mix, and biodiversity.

Climate and Sustainability Market Landscape

Indonesia’s climate and sustainability sector has been growing, driven by the country’s ambition to be net-zero by 2060 and growing investments into the sector. USD $2.3bn in green investment has flowed into Indonesia in support of the country’s clean energy transition. Local and international regulations demand the public sector, financial institutions, and private corporations to adopt sustainable practices.

Opportunities identified in the market suggests that Indonesia is ready for sustainable and climate technologies, showcased by the following:

• Indonesia is one of the biggest suppliers of carbon credits to the international market and the country is home to multiple carbon projects run by international and local project managers (Reuters, 2025). With Indonesia’s carbon bourse and supportive regulatory environment, Indonesia is now well positioned to adapt carbon technologies, MRV solutions, and biodiversity tracing to fulfill projects’ certification requirements.
• Traffic emissions from logistics in Indonesia are a major source of pollution, driven by a heavy reliance on diesel trucks and a 60% reliance on motorcycles for last mile delivery (ITDP, 2025). For Indonesia to reach its net-zero targets, there is a need for greater optimisation and aggregation of logistics
• Indonesia’s data-center market is surging from USD $3B in 2024 to USD $9.4B by 2030 (≈20% CAGR), with hyperscalers (AWS $2.5B, Microsoft $1B+, Google, Alibaba) already investing billions and new AI-ready facilities being built. This creates immediate demand for energy-efficient cooling, power, and green infrastructure solutions.
• Indonesia exports agricultural, forestry, and fishery products to developed markets such as EU, US, and Japan. In 2024, agricultural exports reached USD 248 bn, growing 30% from the year prior (IBAI, 2025). With tightening regulations enacted in 2024 by the EU and US’ FDA, Indonesian exporters are required to provide traceability reports to existing and potential buyers, creating a demand for such solutions.
• Investments into climate change initiatives have increased significantly in Indonesia and it expects to attract more green investments in the coming years (KEMENLH , 2025). With these investments, a need to monitor investments and the impact of such investment is crucial for further funding into Indonesia’s green economy.