Indonesia Targets Faster Growth by Integrating Nature

IBC - ISF

Indonesia is “leaving growth on the table” by not embedding nature in its core economic strategy, IBC COO William Sabandar urged during a panel at the Indonesia International Sustainability Forum 2025. He argued that nature-based solutions are too often treated as an issue of compliance, rather than as a source of business competitiveness. He noted that about 60% of global GDP depends on nature, yet Indonesia captures only about 17% of its GDP from nature-linked sectors.

The framing for nature-based solutions should be pushing competitiveness, not charity. If faster expansion is the goal, nature needs to guide day-to-day decisions across industry, trade, and investment. As William put it, “If you want to grow 8%, then you really need to bring the narrative of nature into the discussion of the economy, industry, trade, and investment.”

He set out three priorities. First, building a unified national narrative that places nature-based solutions inside the growth model. Align ministries, local governments, businesses, civil society organizations, media, and communities behind a single objective. Second, embed nature in business models and balance sheets. “Run it as a business, not as CSR.” Price natural capital in product design, capital expenditure, and risk management so projects become bankable and scalable. Third, strengthen capacity across all stakeholders so roles are clear and delivery improves.

In the near term, financing will be required as an enabler, particularly a carbon market, to attract private capital. This should be followed by sustainability bonds and guarantees that reduce risk and accelerate deal flow. Finally, a credible pipeline with transparent standards is needed to convert pilot projects into scalable and repeatable transactions.

Governance must also improve to enable these transformations. A long-term national vision and clear institutional roles are needed to fragment programs into an executable plan. “This needs to be a national effort,” William said. He also encouraged the private sector to “really push” with concrete proposals and measurable milestones.

The call to action is simple. Treat nature as economic infrastructure. Align narrative, incentives, financing, and capacity. With that alignment, Indonesia can convert its natural endowment into a durable source of competitiveness and resilience. Nature moves from moral appeal to a real engine of growth.