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Indonesia’s push for a state-led investment model presents both opportunities and uncertainties for foreign capital. (Photo: Wikimedia Commons)
Indonesian authorities have finalized the governance structure and implementation plan for the Sustainable Finance Committee, a new body designed to streamline rules and attract more foreign investors and banks into emissions-cutting projects.
The committee will help investors navigate regulations, sector incentives, project pipelines and de-risking instruments in what is “a huge and quite investable market,” Simon Horner, managing director for external affairs at the Green Finance Institute, an advisory body that is working with Indonesian officials on the platform, told Bloomberg.
However, with the Indonesian sovereign wealth fund playing a leading role, foreign investors’ concerns over policy transparency and the competitive environment have also risen.
Investor-focused finance committee nears 2026 finalization
Created to align Indonesia’s fragmented regulatory frameworks and climate-finance policies, the committee will likely include around 20 members from the Finance Ministry, the Financial Services Authority and Bank Indonesia, according to Bloomberg. Overseen by the Finance Ministry, it was signed into law in 2023, and its membership is expected to be finalized in the first quarter of 2026. The body will also establish a secretariat and thematic working groups to execute its mandate.
