Cross-border corporate initiative focuses on sustainable infrastructure and green finance to advance responsible business. ESG BROADCAST shares key takeaways.
In a move to catalyse regional cooperation and accelerate the Sustainable Development Goals (SDGs), the United Nations Global Compact has brought together private sector leaders from China and Indonesia under the newly launched Sino-Indonesia Corporate Community Action Network. The platform, unveiled in May at the Global Business Summit on Belt and Road Infrastructure Investment, is designed to mobilise cross-sectoral partnerships that align infrastructure investment with inclusive, green, and sustainable development.
The initiative marks a strategic pivot toward leveraging private capital to address financing gaps in national SDG strategies. Indonesia’s Ministry of National Development Planning (Bappenas) estimates that US$ 8.7 trillion is needed to meet the country’s SDG targets by 2030. However, a significant shortfall remains—nearly 20% of that investment is yet to be sourced. The Indonesian government is aiming to attract US$ 815 billion in high-quality direct investment over the next five years, equivalent to a 15.7% increase above the current annual average.
The Network supports this goal by uniting 154 Indonesian Global Compact Network (IGCN) members, representing US$ 266 billion in annual revenue and over 500,000 workers, with more than 1,000 Global Compact member companies from China. Through this joint platform, businesses from both countries are encouraged to integrate ESG principles into governance, operations, and investments—strengthening responsible business conduct and sustainable development.
Gita Sabharwal, the UN Resident Coordinator in Indonesia, noted that IGCN’s scale gives it the capacity to influence national development priorities. She highlighted that member companies are increasingly embedding environmental, social, and governance (ESG) considerations into corporate decision-making. The initiative also aligns with China’s national dual carbon goals—peaking carbon emissions by 2030 and reaching carbon neutrality by 2060—which are influencing outward investment decisions, particularly through the Belt and Road Initiative.
The platform showcases actionable green investment strategies. Huayou Cobalt, a major participant, plans to deepen its investment in Indonesia’s new energy sector, aiming to create over 100,000 jobs with a workforce localisation rate above 90%, according to Chairman Chen Xuehua. This case exemplifies the type of job-creating, climate-aligned investment the Network aims to replicate and scale.
Sanda Ojiambo, CEO and Executive Director of the UN Global Compact, described sustainable infrastructure as a “strategic imperative for long-term growth and resilience,” affirming the Compact’s full support for the initiative.
Strategic significance lies in the platform’s ability to bridge capital, innovation, and policy between China and Indonesia, offering a scalable model for corporate-led development partnerships across Southeast Asia. The joint declaration issued at the summit commits participants to align all projects with the Ten Principles of the UN Global Compact on human rights, labour, environment, and anti-corruption.
ESG BROADCAST will continue monitoring the updates related to this topic. Stay tuned to be updated on the related policy and pivotal regulatory shift.
