Indonesia is positioning itself as a leader in climate action, economic diversification, and international trade, with senior officials emphasizing the nation’s ability to transform environmental challenges into opportunities for growth and investment. At a news conference in Jakarta, Deputy People's Consultative Assembly (MPR) Speaker Eddy Soeparno outlined how Indonesia’s climate initiatives, particularly its evolving carbon market framework, are poised to drive economic expansion, job creation, and investment. He described climate change not just as an environmental concern but as a critical threat to Indonesia’s economic stability and national security, necessitating a shift away from traditional models of development. Eddy highlighted the significance of energy transition and reforestation as non-negotiable pathways forward. These efforts are supported by Presidential Regulation No. 110/2025 and the Carbon Unit Registry System (SRUK), which was officially launched on July 9, 2026. The SRUK, managed by the Environment Ministry, serves as a central platform for recording, administering, and verifying carbon units traded under Indonesia’s national carbon market. This system is governed by Environment Ministry/Environmental Control Agency Regulation No. 10/2026, aimed at ensuring transparency, credibility, and integrity in carbon trading while preventing double-counting of emissions reductions. The government’s commitment to climate action is further demonstrated through projects such as the Abadi Masela initiative, which exemplifies how economic growth, energy security, and climate mitigation can coexist. Meanwhile, the creative economy is emerging as another cornerstone of Indonesia’s development strategy. According to Creative Economy Minister Teuku Riefky Harsya, the creative economy is generating quality jobs and enhancing the competitiveness of local products. He emphasized the need for creative economy actors to move beyond mere job creation and instead focus on improving the quality of those jobs through digital technology and artificial intelligence. Data from the Ministry of Creative Economy indicates that investment in the sector surged to Rp183.01 trillion ($10.1 billion) in 2025, reflecting a 32.23% increase from the previous year. This growth is attributed to the alignment of creative economy strategies with national goals, including the promotion of downstreaming in the creative industry to reduce reliance on foreign imports and bolster local industries. Indonesia’s renewable energy potential is equally impressive. The Ministry of Energy and Mineral Resources revealed that the country possesses 3,687 gigawatts (GW) of renewable energy potential, primarily from solar, hydropower, and wind sources. Despite this, the current installed capacity stands at 16.32 GW, underscoring the urgent need to accelerate clean energy development. To address this, the government plans to construct power plants with a combined capacity of 69.5 GW, supported by a 47,758-kilometer transmission network and substations totaling 107,950 megavolt-amperes (MVA). These efforts aim to enhance energy security, promote regional development, and provide reliable electricity to remote and underdeveloped areas. Diplomatic efforts are also underway to strengthen Indonesia’s economic ties with global partners. Indonesian Foreign Minister Sugiono is pushing for the rapid ratification of the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), which is expected to facilitate trade, investment, and economic cooperation. The agreement, once ratified, will eliminate import duties on 98.5% of tariff lines and create opportunities in strategic sectors such as electric vehicles, electronics, and pharmaceuticals. Concurrently, Indonesia is reinforcing its partnership with China in energy and climate action, with both nations agreeing to collaborate on renewable energy, battery-based electric vehicle ecosystems, and green industry supply chains. Domestically, Indonesia is also focusing on institutional reforms to ensure sustainable development. The Ministry of Human Rights is drafting a regulation on business and human rights to enhance legal certainty, attract investment, and safeguard human rights in business activities. This regulation will require companies to assess and report their compliance with human rights standards, aiming to foster a fair and sustainable business environment. As Indonesia continues to refine its economic policies, it remains open to foreign investment, particularly in high-tech manufacturing, green energy, and digital infrastructure. The Indonesian Embassy in Seoul is actively engaging with South Korean investors to explore opportunities in sectors such as semiconductors, advanced manufacturing, and small modular reactors. Additionally, the government is encouraging job seekers to pursue careers in micro, small, and medium enterprises (MSMEs), recognizing them as pivotal to the nation’s economic fabric and a source of adaptability and innovation. With these multifaceted approaches, Indonesia is striving to balance environmental sustainability, economic growth, and international collaboration, setting the stage for a resilient and inclusive future.
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