TLDR: A recent DBS Bank survey, ‘New Realities, New Possibilities,’ indicates that Indonesian finance leaders will focus on capital optimization, artificial intelligence (AI), and Environmental, Social, and Governance (ESG) initiatives over the next five years. Despite global challenges like geopolitical tensions and inflation, new technologies and sustainability are seen as key drivers for innovation and efficiency. Capital cost optimization is the top priority for Indonesian financial leaders, followed by ESG performance and treasury transformation.
A comprehensive survey conducted by DBS Bank, titled ‘New Realities, New Possibilities,’ highlights the strategic priorities for businesses in Indonesia over the coming five years. The report, which gathered insights from over 800 finance leaders across 14 markets, reveals a strong emphasis on capital optimization, the integration of artificial intelligence (AI), and robust Environmental, Social, and Governance (ESG) frameworks.
While global economic uncertainties, including geopolitical tensions, inflationary pressures, and supply chain disruptions, present ongoing challenges, the survey underscores a prevailing optimism regarding the transformative potential of new technologies. Generative AI and blockchain, alongside a heightened focus on sustainability, are identified as significant positive drivers for fostering innovation and enhancing operational efficiency within the Indonesian business landscape.
For Indonesian financial leaders specifically, the survey pinpoints capital cost optimization as the foremost priority. This is closely followed by a commitment to improving ESG performance and a strategic drive to transform treasury operations.
Bank DBS Indonesia has already demonstrated its commitment to ESG principles, with funding related to Sustainable Business Activities (KKUB) reaching 14.8 percent throughout 2024 to early 2025. This includes initiatives like the Sustainability-Linked Trade Facility (SLTF) launched in January 2025, which saw a disbursement of US$20 million (Rp336.76 billion) to PT Indo-Rama Synthetics. Furthermore, in early March, Bank DBS Indonesia, in collaboration with Bank UOB Indonesia, provided Rp1.7 trillion in funding to PT Princeton Digital Group (PDG) for the development of JC2, an AI-based data center campus with a 22 MW capacity in Cibitung. This directly links AI development with sustainable infrastructure. Additionally, a Sustainability-Linked Loan (SSL) of Rp350 billion was extended to PT CJ Feed & Care Indonesia to support greenhouse gas emission reduction targets.
The broader context of Indonesia’s economic outlook for 2025, as projected by DBS Group Research, anticipates renewed impetus for trade and investment, driven by the ‘China+1’ factor and ongoing supply chain reconfiguration. Consumption and improvements in human capital are also expected to be key drivers of growth. The Indonesian government is also actively leveraging artificial intelligence and information technology, including electronic tax systems, to increase state revenue.
ESG is increasingly becoming a business imperative in Indonesia, with regulatory pressures mounting for transparency. The Indonesia Stock Exchange (IDX) now requires listed companies to file ESG reports, and by the end of 2024, 94% of IDX-listed companies had published sustainability reports. Sustainable financing is also becoming the norm, with major Indonesian banks increasing their green lending portfolios. The energy transition is accelerating, with initiatives like the Bali Green Hydrogen Project, and tax incentives are shifting towards ESG-aligned projects, such as electric vehicle adoption.
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DBS Bank Indonesia is also integrating ESG principles into its banking services for consumers, such as the Spark Savings product, which allows customers to donate a portion of their interest earnings to social partners. The bank’s green and social financing reached over $368 million (Rp6 trillion) as of November 2024. Technology adoption, including the digibank by DBS app, is also a key part of DBS’s ESG strategy, reducing reliance on paper and physical branches.
