Five initiatives to watch on Indonesia’s climate action

By Bolun

With the 4th largest population in the world, Indonesia has shown strong ambitions in fighting climate change. The G20 presidency in 2022 also enabled Indonesia to act proactively and show climate leadership on the international stage. In this article, we showcase five initiatives that have the potential to shape Indonesia’s climate efforts. 

1. The Just Energy Transition Partnership (JETP)

During the G20 Summit in November 2022, Indonesia and its international partners launched the JETP at the Partnership for Global Infrastructure and Investment event. JETP is a master plan that aims to mobilize US$20 billion in blended financing in the next 3-5 years. The expected outcomes are ambitious: to move Indonesia’spower sector peaking date forward by around 7 years, to 2030, and to reduce emissions by over 2000 megatons by 2060, compared to the current scenario. With JETP, Indonesia could reach net zero most likely by 2050. JETP could also help Indonesia accelerate renewable energy development, making renewable energy contribute to at least 34% of the total generation of the nation by 2030. The Indonesian government has actively been negotiating investment opportunities under JETP with various partners. 

Meanwhile, doubt about JETP still exists. Some worry that JETP could create a potential debt trap for Indonesia as it is not easy to get direct grants for the scheme. But the scheme is still a positive movement to show the government’s dedication and concrete plans to achieve the net zero goal.  

2. Blue Halo S Initiative

In the Sustainability G20 side event, the Tri Hita Karana Forum and the Ocean 20 conference, the government of Indonesia, Green Climate Fund, Conservation International, and Konservasi Indonesia jointly announced Blue Halo S Initiative, a new model for finishers management and ocean conservation in Indonesia. 

What makes the Blue Halo S Initiative unique is the approach that integrates marine protection and sustainable fishery management together. Under this initiative, the economic benefits of sustainable marine resource development are reinvested in environmental protection, which in turn bolsters natural resources and supports commercial production. With this “protection-production” approach, the initiative aims to mobilize US$30 billion in blended finance.

Figure 1: Blue Halo S; Source: Maritime Fairtrade

The initiative is already attracting support from the Green Climate Fund (GCF), which announced the approval of the Project Preparation Facility (PPF). GCF pledges almost US$1.5 million to prepare the groundwork for this initiative in Indonesia. Conservation International, an international NGO, will also contribute USD 350,000 and coordinate project preparation. In the later stage, the Blue Halo S will also adopt a Blue Bond, to expand its scope of fundraising. 

3. Fairatmos

Indonesia does not only have government initiatives to address climate challenges. Domestic innovators are already on the move. Fairatmos, a startup company and climate technology provider, tries to simplify the process to discover, develop and deliver high-integrity carbon offset. 

As Indonesia’s first carbon technology platform, Fairatmos enables communities to develop carbon sequestration projects for companies to finance and offset. By mobilizing technology to create access tocarbon markets for communities, individuals and companies gain access to buy high-quality carbon credits from community-led projects. Fairatmos also hosts various events and workshops in Indonesia, setting up an enabling environment for stakeholders to discuss climate technology throughout the country. 

Figure 2: Fairatmos team; Source: Tech in Asia

4. Climate Impact Innovations Challenge (CIIC)

In recent years, venture capital and multinational companies have started to come up with initiatives to join the climate race in Indonesia as well. One example is the Climate Impact Innovations Challenge (CIIC) by East Ventures and Temasek Foundation. East Ventures is an Indonesia-based venture capital firm that has supported over 250 leading tech startups in ASEAN. Temasek is a leading Singaporean investment company that manages assets of over 300 billion Singapore dollars. Temasek Foundation has been supporting climate efforts worldwide. 

The Climate Impact Innovations Challenge (CIIC) provides opportunities for tech innovators to pitch their climate solutions and compete to win a total prize pool of IDR 10 billion (around 666,000 USD). The prize will be given to winners to pilot their solutions within Indonesia. In 2023, CIIC will focus on 4 strategic topics including renewable energy, food and agriculture, mobility, ocean. 

5. AC Ventures

AC Ventures (ACV) is another example of venture capital. The firm has been active in climate sector research and investments recently. As an early-stage VC firm, it has invested in many companies which have the potential to provide solutions at scale, to issues such as waste management, clean energy development, and climate-smart agriculture. 

For example, Waste4Change, an Indonesian waste management startup, has managed over 8,000 tons of waste annually from more than 111 business clients and 3,450 households. EdenFarm, an Indonesian B2B food supply chain startup, is helping stakeholders in Indonesia achieve near-zero food waste. Aruna, Indonesia’s largest integrated fisheries commerce platform, tackles the overfishing issue using data and promoting sustainable practices. Xurya, a solar energy startup, is providing sustainable and affordable solutions for Indonesian households and businesses.

Figure 3: Aruna; Source: Aruna

Besides investing in talented companies, AC Ventures also partners with the public and private sectors in Indonesia to promote best practices. Its head of ESG joined Indonesia’s Chamber of Commerce and Industry on its ESG task force to set nationwide standards for sustainability. AC Ventures also collaborates with Boston Consulting Group to co-publish the report “Catalyzing Indonesia’s Green Growth Potential” to share experiences and best practices on Indonesia’s race towards net zero.  


ASEAN Briefing. (2023). Indonesia’s Just Energy Transition Partnership: Impacts for the Green Economy.

Green Climate Fund. (2022). Blue Halo S – Blue Ecosystem Adaptation Mechanism (BEAM).

Fairatmos. (2023). Offset Your Emission, Build Quality Carbon Offset Projects.

CIIC. (2023). Disruptive Innovations and Ideas in Driving Sustainability in Indonesia and Beyond.

AC Ventures. (2023). AC Ventures and Boston Consulting Group release the definitive report on Indonesia’s booming fintech sector.

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