AC Ventures and Boston Consulting Group release report on decarbonization and Indonesia’s green growth potential

AC Ventures and Boston Consulting Group release report on decarbonization and Indonesia’s green growth potential


  • “Green growth” is a term to describe a path of economic growth that is environmentally sustainable.
  • Public and private spending in Indonesia is expected to reach US$350 billion per year by 2030 to achieve the nation’s 2060 net-zero ambitions.
  • Indonesia will need to decouple carbon emissions from growth, necessitating a 40% to 50% reduction in carbon emissions per unit of GDP by 2030.
  • As a result of robust economic growth in recent years, Indonesia is now the fourth largest greenhouse gas (GHG) emitter globally. It has the opportunity to transition to a green growth economy, which will require the participation of innovators, investors, and policymakers.
  • Driving green growth in Indonesia will involve three key areas: strategy and professional services (a US$46 billion potential market by 2030), solutions that optimize GHG intensity (a US$350 billion potential market by 2030), and emission offsetting (a US$3.5 billion potential market by 2030.


JAKARTA, INDONESIA, (13 JULY 2023) Earlier today, Indonesia’s leading early-stage venture capital firm AC Ventures (ACV) and Boston Consulting Group (BCG) jointly released the country’s premier report on the decarbonization sector and its sweeping implications for the nation’s “green growth” potential, outlining a pivotal role for the country on the global stage as it seeks to transform its economy.

“Green growth” is a term to describe a path of economic growth and prosperity that is also environmentally sustainable.

Titled Catalyzing Indonesia’s Green Growth Potential,” the report launched during an online press conference, in which BCG Project Leader Brendan Board presented an overview of the report’s key findings, followed by a panel discussion with BCG’s Managing Director and Partner in Singapore Marc Schmidt, AC Ventures’ Principal of ESG Lauren Blasco, and Maka Motors’ Co-founder and CEO Raditya Wibowo. The panel then conducted a live Q&A session with reporters from around Southeast Asia.

As the fourth largest global greenhouse gas (GHG) emitter, Indonesia faces significant environmental challenges and stands critically exposed to climate change risks.

Lauren Blasco of AC Ventures explained, “However, Indonesia also possesses the immense potential to transition to a green economy. This shift is an opportunity for startups, MSMEs, and investors to play a leading role in fostering sustainable economic development and combating climate change.”

According to the report, green growth in Indonesia involves three key focus areas – strategy and professional services (a US$46 billion potential market by 2030), solutions that optimize GHG intensity (a US$350 billion potential market by 2030), and emission offsetting (a US$3.5 billion potential market by 2030).

To leverage these opportunities fully, the report lays out how Indonesia can boost green financing, develop supportive regulatory frameworks, and nurture green talent. These measures will be crucial in meeting Indonesia’s ambitious emission-reduction targets for 2030 and supporting the country’s continued economic growth.

Marc Schmidt of BCG said, “Building a low-carbon economy and the associated decarbonization will provide opportunities for stakeholders across all sectors, including Indonesia’s large and important MSME sector. Broad participation by innovators will be essential to implement and sustain the necessary changes in Indonesia’s economy.”

Lauren said, “Our report underlines the tremendous decarbonization potential Indonesia holds. For example, the international demand for voluntary carbon credits is set to skyrocket, increasing by about 27% annually until 2030. Currently, around 30% of the world’s total carbon reserves are in Indonesia’s peatlands alone.

“When we commoditize their preservation, Indonesia is poised to be a frontrunner in this burgeoning market. We foresee our carbon credit market expanding to 140 million tons by 2030, a huge leap from the 40 million issued in the past decade. At a projected rate of US$25 per ton, this market alone could bring in US$3.5 billion annually, signaling a significant opportunity.”

Indonesia, as Southeast Asia’s single largest economy and one that is projected to be the world’s fourth-largest by 2050, has a considerable stake in transforming into a green growth economy. Not only is this transformation environmentally imperative, but it is also a substantial business opportunity. The report estimates the value of Indonesia’s green growth opportunity at US$400 billion, combining industry revenue and carbon offset potential.

The report also spotlights the potential for smaller-scale ventures like startups and MSMEs, as well as investors and financiers, to drive Indonesia’s transition. For instance, Unravel Carbon, a notable startup providing a SaaS decarbonization platform, and MAKA Motors, accelerating EV two-wheeler adoption in Indonesia, exemplify the country’s emerging green growth sector. Meanwhile, ventures like Fairatmos aid carbon mitigation project developers, establishing a developing domestic carbon credit ecosystem.

To address the nation’s significant talent shortage, especially in the green startup space, Indonesia has established the National Talent Management body to develop and retain talent. Simultaneously, the Indonesian Financial Services Authority (OJK) is fostering sustainable finance practices, and the country’s central bank has joined the Network for Greening the Financial System (NGFS).

“Indonesia’s path to green growth is clear, but the journey will require concerted efforts from all sectors,” said Marc. “We’re calling on businesses, citizens, financiers, and investors to join us in building a future that’s sustainable and equitable for all.”

Lauren added, “In developing the regulatory frameworks and driving green growth across the economy, it’s crucial to ensure a ‘just transition.’ We need to consider the interests of all stakeholders and create economic transformations that are fair and equitable.”


To access the full report, please visit: 



About AC Ventures

AC Ventures (ACV) is a top Southeast Asian venture capital firm that invests in early-stage startups focused on Indonesia and ASEAN, with over US$500 million in assets under management. The firm empowers entrepreneurs with more than just capital by combining operational experience, industry knowledge, deep local networks, and resources. ACV’s team has invested in over 120 tech companies in the region since 2012. With a team of more than 35 professionals led by Adrian Li, Michael Soerijadji, Helen Wong, and Pandu Sjahrir, it has offices in Jakarta and Singapore.

About Boston Consulting Group (BCG)

Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963. Today, we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholders—empowering organizations to grow, build sustainable competitive advantage, and drive positive societal impact.

Our diverse, global teams bring deep industry and functional expertise and a range of perspectives that question the status quo and spark change. BCG delivers solutions through leading-edge management consulting, technology and design, and corporate and digital ventures. We work in a uniquely collaborative model across the firm and throughout all levels of the client organization, fueled by the goal of helping our clients thrive and enabling them to make the world a better place.

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