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Jakarta Post

From commitment to real execution of the green transition

Good regulation must be matched with consistent execution and solid institutions.

Shinta Widjaja Kamdani (The Jakarta Post)
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Sat, October 18, 2025 Published on Oct. 16, 2025 Published on 2025-10-16T14:32:31+07:00

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Battery power: An electric car recharges Sept. 17, 2025 at a charging station inside an apartment complex in Jakarta. Battery power: An electric car recharges Sept. 17, 2025 at a charging station inside an apartment complex in Jakarta. (JP/Iqro Rinaldi)

T

he world is moving inevitably toward a transformation into a green economy. The increasingly evident effects of climate change, geopolitical pressures on resources and rising global consumer awareness are driving a new development paradigm. This new paradigm aims not only for economic growth, but also for environmental harmony and social inclusion.

Developed countries have already placed sustainability at the core of their national strategies. Energy transition, industrial decarbonization and circular economy are no longer just buzzwords, they are policies supported by massive investments. Amid this global wave, an important question arises: How is Indonesia responding?

Let us look at the recently held Indonesia International Sustainability Forum (ISF) 2025, which took place on Oct. 10–11. This forum is not merely a conference. It is a reflection of Indonesia’s noble aspiration to align with global mainstream efforts, and more than that, to affirm its ambition to become a key player in shaping the global sustainable development architecture.

With the theme “Investing for a Resilient, Sustainable and Prosperous World”, ISF 2025 brought together more than 10,000 participants, including government representatives, national and global business actors, academics and international organizations. 

A total of 13 Memoranda of Understanding (MoUs) were signed and 3 declarations launched, with an investment value reaching Rp 278 trillion (about US$16.8 billion). From research collaborations to concrete financing in sectors such as clean energy, marine ecosystems, carbon markets, forestry and green infrastructure, these initiatives show that Indonesia is taking steady, tangible steps.

But investment alone is not enough. The biggest challenge lies in implementation. There are many questions that need clear answers. Are our regulations supportive enough? Is our bureaucracy ready to work cross-sectorally? Can industrial players, especially small and medium enterprises,  access green financing?

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The Indonesian government has recently taken decisive steps to strengthen the regulatory foundation for its green transition. Two newly issued presidential regulations in 2025 reflect this commitment.

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