Strengthening governance, securing resilience

Devastating floods, rapid deforestation and other rising risks are adversely impacting economic growth and local welfare in Indonesia, prompting policymakers to shift towards stronger, decentralised governance approaches. The challenge is involving subnational and non-state actors within previously top-down governance approaches, while building long-term financial pipelines for local resiliency and adaptation.  

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This session will tackle the key questions facing Indonesia’s transition, including: What role should public institutions play in enabling long-term capital flows for these urgent needs? How are geopolitical and economic headwinds affecting the outlook for sustainable finance? And is the domestic economy responsive enough to meet emerging sustainable development challenges?

In the face of rampant nature loss, Indonesia’s carbon market ambitions could prove vital to plugging critical funding gaps facing the country’s conservation efforts. From aligning to international frameworks through legislative reform to strengthening forest carbon governance, Indonesia is making concrete strides to establish itself as a leading regional carbon player.

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This session will answer burning questions such as: Can a national carbon market provide the regulatory certainty to spur investments and scale solutions? What safeguards are needed to ensure market scale does not come at the expense of environmental integrity and social welfare? And will the credibility of the country’s carbon trade affect its ability to leverage global nature finance?

The success of climate tech adoption will hinge on a steady supply of high-demand critical minerals such as nickel – a key component in electric vehicle batteries. Though strategically positioned to benefit as a global critical minerals leader, Indonesia’s reliance on captive coal to power production is putting its climate goals and economic future at risk. The challenge for stakeholders, from regulators to producers, is managing the industry’s growing ESG concerns, from pollution and ecological harm to human health risks, while contending with the global critical minerals race which is reshaping the nature of geopolitics.

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This session will address urgent questions such as: Can strategies to curb the industry’s rising ESG risks keep pace with surging demand? In lieu of direct regulations, how does the industry align to global just transition frameworks? And will the G7-allied economies’ plan to diversify away from China’s stronghold on critical mineral supply help or hinder Indonesia?