Indonesia presents USD280 billion opportunity for the private sector to invest in sustainable development, says Standard Chartered
Standard Chartered Indonesia have released the “Standard Chartered SDG Investment Map”, which has revealed that there is an almost USD10 trillion opportunity for private-sector investors across all emerging markets, with Indonesia representing USD280.7 billion of the total.
The study identifies opportunities for the private sector to contribute to three infrastructure-focused goals between now and 2030, naming Clean Water and Sanitation, Affordable and Clean Energy, and Industry, Innovation and Infrastructure ask key areas for potential growth and investment across emerging markets.
The greatest opportunity in Indonesia is found in achieving and maintaining universal access to electricity, says Standard Chartered, representing a USD147.5 billion private-sector investment opportunity. This takes into account the proportion of the Indonesian population currently without access to electricity, projected population growth, and the growing demand for power as the economy develops.
For SDG 9, regarding Industry, Innovation and Infrastructure, which encourages improvement in industry, innovation and infrastructure, Opportunity2030 highlights private sector investment opportunities in transport and improving digital access. Securing full digital adoption in Indonesia – a combination of mobile phone subscription rates and internet connectivity – would require private sector investment of around USD53.7 billion. To significantly improve Indonesia’s transport infrastructure by 2030 provides a USD75.5 billion investment opportunity for the private sector.
The potential private-sector investment opportunity in the water sector is smaller, but as 19% of the Indonesian population still do not have access to clean water and sanitation, investment will make a real impact. To help achieve universal access by 2030 will require private-sector investment of USD4 billion.
Andrew Chia, Chief Executive Officer, Indonesia, Standard Chartered, said “With the largest economy in Southeast Asia, Indonesia is front and centre in aligning existing development plans with the UN Sustainable Development Goals. Its large population means investing in sustainable infrastructure is vitally important to help achieve the SDGs by 2030, and the country has substantial opportunities for the private sector to invest with impact.”
The Standard Chartered SDG Investment Map is a macroeconomic study that draws on global data sources and indicative private-sector participation rates to provide companies, institutional investors and other stakeholders with an overview of where their investments could have the greatest impact. It spans 15 of the world’s fastest-growing economies and estimates the potential private-sector investment opportunity to contribute to three of the most investment-ready SDGs.
The full report can be found HERE.