The Climate and Sustainability Fund of Indonesian venture capital firm AC Ventures has received an anchor commitment of $8 million from Australian Development Investments (ADI), Australia’s premier impact investment fund.
According to a statement released by the Australian Embassy in Indonesia on Monday, the investments will be made in areas such as energy efficiency, waste management and the circular economy, renewable energy, electric mobility, and climate-smart agriculture. The goal is to reduce carbon dioxide (CO2) emissions by 10 megatons.
Through the Australia-Indonesia Climate, Renewable Energy and Infrastructure Partnership, or KINETIK, this is the first ADI investment.
“The Australian government’s anchor commitment will enable AC Ventures to identify, invest in and support businesses that are at the forefront of the energy transition,
“Australia is committed to investing in funds that deliver both financial returns and measurable climate, gender and development impacts in Indonesia,” said Australian Embassy’s Chargé d’Affaires Gita Kamath.
According to Helen Wong, Managing Partner at AC Ventures, this collaboration demonstrates the increasing awareness of the significance of investments with a climate focus.
“Together, we can drive meaningful change and contribute to a more sustainable future,” she added.
The announcement is made in conjunction with a delegation of Australian investors visiting Indonesia, which includes long-standing investors Macquarie Group, ANZ Bank, and Aspen Medical in addition to investors in the fields of mining, resources, infrastructure, energy, healthcare, and logistics.
“We want to see Australian investors recognizing and capitalizing on the opportunities Indonesia presents and there are many different entry points to the market, including impact-focused venture funds like AC Ventures,” said Jennifer Westacott, Australia’s Business Champion for Indonesia.
The statement claims that over the past ten years, Australian businesses have invested over $4.3 billion in Indonesia, and they currently invest over USD 500 million annually.
