Terratai’s Fajar Anugerah at ISF 2024: The Flow of Money in Nature-Based Innovations
Jakarta, September 5, 2024 – At the Indonesia International Sustainability Forum (ISF) 2024, Fajar Anugerah from Terratai shared some insights themed "The Trend of Impact Investment in Supporting Nature-Based Innovations." His discussion, part of the Warung Nusantara Discussion titled "From Forest to Future: Elevating Bioeconomy Opportunities in Indonesia," led by Koalisi Ekonomi Membumi centered on the critical role of nature-based solutions (NBS) in reshaping Indonesia’s economy and the growing importance of impact investment in driving sustainable practices.
Fajar emphasized that nature-based solutions are emerging as a significant economic force. Based on McKinsey report, in Indonesia alone, the NBS sector is valued between $100 to $150 million, presenting new business opportunities and models that integrate ecological restoration. He highlighted that for every $1 invested in ecosystem restoration, there is a potential economic return of $3 to $75. This potential positions Indonesia to lead in sustainable development, leveraging its rich biodiversity and natural assets.
Fajar also explored the role of blended finance in facilitating the transition to a sustainable economy. He highlighted the opportunity for a mix of grants, equity, loans, technical assistance, guarantees, and insurance to support NBS ventures. One of the challenges, he mentioned, is establishing national-level mechanisms that enable public-private partnerships. These financial mechanisms are essential in reducing the risks associated with early-stage investments in NBS and attracting more significant capital flows into the sector. At the moment, Indonesia Impact Alliance is exploring the setting up of such mechanism.
Throughout his presentation, Fajar underscored Terratai’s commitment to supporting nature-based ventures that align with these emerging trends. By supporting the businesses which protect biodiversity, restore ecosystems, and drive sustainable economic growth, Terratai aspirer to be at the forefront of transforming Indonesia’s NBS landscape.
Terratai’s mission aligns closely with Indonesia’s broader climate goals, as articulated by President Joko Widodo during the forum. President Jokowi emphasized Indonesia’s unique position in tackling climate change, highlighting that the country’s 3.3 million hectares of mangrove forests absorb carbon 12 times more effectively than tropical rainforests. He reaffirmed Indonesia's commitment to achieving net zero emissions and contributing to global climate efforts.
By investing in ventures that prioritize biodiversity conservation and sustainable practices, Terratai is contributing to Indonesia’s efforts to combat climate change while driving economic growth. Through strategic impact investments, Terratai supports businesses that protect ecosystems, enhance food security, and provide long-term solutions to environmental challenges.
In addition to these insights, a subsequent session focused on mainstreaming support for NBS, guided by KADIN, Systemiq, and Koalisi Ekonomi Membumi, highlighted the need to:
- Build a compelling and high-profile identity for businesses positively impacting conservation and restoration to capture public attention and enthusiasm.
- Create orchestrated momentum through social media engineering to ensure NBS becomes a focal point of widespread attention and action.
As the ISF 2024 highlights Indonesia's potential to lead in nature-based innovations, Terratai continues to play a pivotal role in channeling impact investment towards ventures that not only generate financial returns but also create lasting environmental benefits.
