Research area
Sustainable Finance
Sustainable finance desk dedicated to navigate financial institutions and government to unlocking clean energy financing and phase-out from coal sectors dependency.
Indonesia Should Bring a Just Forest Agenda to COP31
As Indonesia heads to COP31 in Antalya, Türkiye, it must address the environmental risks of B50 biodiesel expansion, protect forests and peatlands, recognise Indigenous land rights, and ensure local communities receive direct funding and at least 20% of forest and carbon revenues. Indonesia's green economy must not only keep forests standing but also ensure that the people protecting them share in its benefits. An opinion article by Muhammad Zulfikar Rakhmat and Bhima Yudhistira Adhinegara, published in Jakarta Globe.
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Second nationally determined contribution (SNDC): in pursuit of 8% economic growth, environmental protection and vulnerable groups are overlooked
Jakarta, October 24, 2025 — The government has just released the draft of the Second Nationally Determined Contribution (SNDC), which is planned to be submitted to the United Nations Framework Convention on Climate Change (UNFCCC) ahead of COP 30 this November in Brazil. During a public consultation session held by the Ministry of Environment and Forestry, it was acknowledged that the delay in submitting the SNDC document was due to difficulties in aligning targets across sectors. In fact, unde
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The economic diversification potential of North Maluku Province
Since 2020, North Maluku has become the focus of the Indonesian government’s ambitions in nickel mining and downstream processing. The impact has been significant: on paper, the province has recorded double-digit economic growth since 2021. Even in 2022 and 2023, amid the pressures of COVID-19, growth still exceeded 20%. Although this looks impressive, excessive reliance on nickel poses serious risks to the local economy and the environment. Nickel is a finite commodity, with prices and demand...
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The economic diversification potential of Konawe: moving beyond the extractive development model
Although the nickel boom has brought an extraordinary surge in economic growth to Southeast Sulawesi—particularly Konawe Regency—it is by no means a recipe for sustainable development. Complete dependence on nickel leaves Konawe’s future vulnerable on multiple fronts. Nickel is a non-renewable resource, and its price is heavily influenced by volatility in international markets. Furthermore, overexploitation can cause serious environmental damage,
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Morowali’s economic diversification potential for non-mining products
The RPJPN 2025–2045 has emphasized the importance of promoting sustainable economic growth at both the provincial and regency levels. For Morowali, this mandate underscores the urgent need to move away from an economy that is overly dependent on nickel mining and processing. The regency needs a more resilient economic model—one that can secure long-term prosperity while safeguarding the environment. In this report, CELIOS designs several economic diversification strategies…
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Indonesian banks disburse USD7.2 billion for coal industry
The #BersihkanBankmu coalition released its latest report, titled “Funding the Climate Crisis: How Banks in Indonesia Support Coal Financing,” highlighting the (still) strong financial support for coal companies. The report reveals that the five largest national banks accounted for USD5.6 billion of the total USD7.2 billion in financing. Bank Mandiri was the largest financier with USD3.2 billion, followed by Bank Rakyat Indonesia (BRI) with USD809.5 million, Bank Negara Indonesia (BNI) USD
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Building a restorative economy in villages: A solution to combat the illusion of self-sufficiency
CELIOS has released its latest study on strengthening restorative economies in villages as an alternative to the illusion of self-sufficiency. The study finds that 23,472 villages in Indonesia have high restorative potential, but 95.40% of them still show little initiative in advancing this agenda. Low awareness and limited engagement by village governments and communities have worsened environmental and economic problems caused by unchecked natural resource exploitation. The study
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Palm oil land moratorium: A positive impulse for Indonesia's economy
Indonesia, as the world’s largest palm oil producer with plantations spanning 16.8 million hectares, faces a dilemma between industrial expansion and environmental sustainability. Although palm oil exports contributed USD 37.76 billion in 2022 and USD 29.54 billion in 2023, the biodiesel development plan from B40 to B50 initiated by President Prabowo Subianto’s administration requires further expansion of palm oil plantations, raising concerns about deforestation and the loss of food-producing land. The Palm Oil Moratorium under Presidential Instruction No. 8 of
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The dilemma of phasing out coal-fired power plants: Losses or gains for the country?
JAKARTA, 5 November 2024 – The government’s energy transition commitment has passed from Indonesia’s 7th President, Joko Widodo (Jokowi), to President Prabowo Subianto, with the hope that Indonesia will remain committed to the energy transition, particularly accelerating the retirement of coal-fired power plants (PLTU). As part of Indonesia’s energy transition, the government needs to recognize the benefits of early PLTU retirement as a step toward achieving net-zero emissions by 2060 or sooner. Pe
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Towards KRAS’s general meeting of shareholders: convertible bonds for green steel
The PT Krakatau Steel Tbk (KRAS) shareholders’ meeting scheduled for September 5, 2024, has attracted considerable attention. KRAS needs a recovery in financial performance and a leap in innovation, including through the development of green steel, or low-carbon steel. Previously, this state-owned steel issuer recorded a loss of Rp476.57 billion in the first quarter of 2024, a 59.50% year-on-year (yoy) increase in losses. KRAS’s deteriorating financial performance has had a significant impact on the trend in its share price
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Recommendations for Indonesia's sustainable taxonomy
The energy transition requires long-term financing support, so financial industry regulations must evolve to promote financing for green and sustainable sectors. The green taxonomy is one step toward achieving this goal. The Financial Services Authority (OJK) has issued the Green Taxonomy as a guide for the financial industry to classify green financing. This guide is expected to create transparency and monitor green financing commitments, which can then...
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10 guiding principles for financing coal retirement
Reclaim Finance, with support from CELIOS, BankTrack, and various CSOs from Southeast Asia, Europe, North America, and Africa, released “Ten Guiding Principles for Financing Coal Retirement Mechanisms.” These principles aim to ensure that the early retirement of coal-fired power plants aligns with 1.5°C global warming pathways, prioritizes renewable energy, avoids false carbon solutions, secures concessional financing for developing countries, and protects communities affected by coal plant closures. They empha…
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PLN bondholders must accelerate the energy transition
CELIOS presents the report “The Role of Bondholders in PLN’s Energy Transition Agenda,” which examines the challenges and opportunities in PLN’s shift from fossil fuels to clean energy. This energy transition requires significant financial restructuring, given the dominance of coal-fired power plants and the substantial investment needed to develop New and Renewable Energy (NRE), such as solar and hydropower. The report highlights how financing mechanisms, particularly the role of bondholders, can facilitate or even
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