Indonesia’s Sustainable Finance Opportunities and G20 Presidency Achievements Mapped Out in New ESG Intelligence Report

PwC Indonesia and Oxford Business Group team up for key research tool 

Jakarta, 1 February 2023 - A new environmental, social and governance (ESG) intelligence report, produced by Oxford Business Group (OBG) in partnership with PwC Indonesia, charts the country’s ongoing efforts to put sustainable finance at the heart of its growth plans, in line with the UN Sustainable Development Goals (UN SDGs) and rising demand from investors.

Titled “ESG in Indonesia: Access to Finance”, the report provides an in-depth analysis of the latest developments in the country’s ongoing sustainability journey – following its inaugural G20 Presidency in 2022 –  in an easy-to-navigate and accessible format, supported by key data and infographics. 

The report examines Indonesia’s bid to facilitate financing through innovative channels. This includes the region’s first SDG-linked bond, launched in September 2021 for projects to tackle environmental challenges and promote socio-economic development.

It also shines a spotlight on Indonesia’s role in accelerating collective progress towards ESG-aligned objectives during the country’s G20 Presidency.

With a focus on the sustainable energy transition, priorities included a common-ground taxonomy and standardised reporting to better inform investment decisions. These are among the topics explored in OBG’s latest ESG publication, as well as the adoption of Indonesia’s first green taxonomy.

ESG advancements within Indonesian organisations are also mapped out, including the role of net-zero strategies for ESG value creation – for state-owned enterprises and family businesses, as well as large corporations and government. 

The publication highlights the expected rise in future demand for third-party sustainability assurance, noting its importance to support credible disclosure and combat so-called greenwashing as ESG requirements continue to evolve. 

The role that PwC plays in supporting companies through sustainability assurance and other elements of ESG value creation is also explored, highlighting the professional services provider’s contribution to the B20 dialogue forum – as knowledge partner for the Energy, Sustainability and Climate Task Force, and the Finance and Infrastructure Task Force. 

The report includes interviews with a number of thought leaders from PwC Indonesia, across topics including the factors driving ESG implementation in Indonesia; the B20 as a platform for Indonesian business to help reshape global policy discussions; and the impact of the country’s green taxonomy on investor focus. Among these, Julian Smith, PwC Indonesia’s Investment Director, outlines the path Indonesian businesses can take to access sustainable finance. 

“Businesses first need to understand what their ESG strategies and targets are, as well as how they contribute to and advance their corporate strategies,” Smith says. “Once these necessary elements are in place, businesses can then begin to link their activities to their environmental goals.” 

Jade Currie, OBG’s Regional Editor for Asia, said that while incorporating ESG principles into operations has long been recognised as good practice, shifting investor priorities are helping businesses to realise the financial benefits of ESG.

“Demand for sustainable financing is on the rise, buoyed by a sharper focus on ESG-related metrics among investors and backed by evolving regulations,” she said. “The research undertaken with PwC for this report highlights these trends, which were explored in G20 and B20 dialogues during Indonesia’s 2022 Presidency, and the financial opportunities presented to organisations with an integrated ESG strategy.”  

“ESG in Indonesia: Access to Finance” marks the second collaborative analysis undertaken by OBG and PwC Indonesia. The first report, published in 2021, examined the country’s digital transformation, investment landscape and climate sustainability. 

Both studies form part of a series of tailored reports that OBG is currently producing with its partners, alongside other highly relevant, go-to research tools, including a range of Future Readiness reports, country-specific Growth and Recovery Outlook articles and interviews.