At the latest KATADATA event, I had the opportunity to highlight AC Ventures’ strategic investments in five key sub-sectors within the climate and sustainability space. Our approach centers on business models that align commercial success with climate impact. For example, Waste4Change promotes responsible waste management, and Maka Motor develops cost-effective electric vehicles, both reflecting our commitment to sustainability. Additionally, Accacia supports real estate firms in meeting sustainability mandates, helping them attract eco-conscious investors.

Indonesia’s vulnerability to climate change is a stark reminder of our global environmental impact, as we are the 8th largest greenhouse gas emitter. Rising sea levels threaten 42 million people and 2,000 islands are predicted to sink by 2025, making immediate action critical. Since 2019, economic losses from flooding have reached an estimated US$350 million, underscoring the urgency of addressing climate risks.

Despite these challenges, Indonesia has made notable strides in embracing climate action, particularly through the adoption of electric vehicles (EVs). The EV market in Indonesia has doubled from 2023 to 2024, with global brands such as Vinfast, Wuling, BYD, and Tesla entering the market. This growth signals Indonesia’s strong commitment to a greener future.

However, the rapid adoption of AI presents new challenges for the energy transition, as AI’s environmental costs are significant due to its high energy consumption. AI data centers consume 5 to 20 times more energy than conventional data centers, leading to a substantial increase in carbon emissions. As we move forward, prioritizing energy transition becomes increasingly crucial. Investing in renewable energy and efficient infrastructure is essential to reducing our carbon footprint, mitigating climate impacts, and ensuring a sustainable and resilient future. This shift is vital not only for environmental reasons but also to maintain global competitiveness in a rapidly evolving world.