Australia’s flagship impact investment fund Australian Development Investments (ADI) has announced a $8 million anchor commitment to Indonesian venture capital firm AC Ventures’ Climate and Sustainability Fund.

Australian Embassy Indonesia said in a statement on Monday that the investments will be in sectors including renewable energy, electric mobility, energy efficiency, waste management and circular economy, and climate-smart agriculture with the aim of achieving a reduction of 10 megatons of carbon dioxide (CO2) emissions.

This is the first ADI investment through KINETIK – the Australia-Indonesia Climate, Renewable Energy and Infrastructure Partnership.

“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.

Helen Wong, Managing Partner at AC Ventures, said this partnership is a testament to the growing recognition of the importance of climate-focused investments.

“Together, we can drive meaningful change and contribute to a more sustainable future,” she added.

The announcement coincides with an Australian investor delegation to Indonesia including long-term investors Macquarie Group, ANZ Bank and Aspen Medical plus investors in healthcare, logistics, infrastructure, energy, mining and resources.

“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.

According to the statement, Australian companies have invested more than $4.3 billion in Indonesia over the last decade and are now investing over USD 500 million per year.

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