UN Global Compact brings together Chinese and Indonesian private sectors to accelerate SDG progress
19 June 2025
Caption: Greening investments in infrastructure and clean energy offer real opportunities for both Indonesia and China to work together and deliver sustainable economic growth in the Asia-Pac region.
The private sector has a pivotal role to play in accelerating progress toward the Sustainable Development Goals (SDGs). As the UN’s main platform for engaging businesses, the UN Global Compact is catalyzing this by bringing together thousands of companies around shared priorities. A new collaboration launched last month —bringing together private sector actors from China and Indonesia— demonstrates how this approach can drive large-scale impact.
The Sino-Indonesia Corporate Community Action Network, launched in May at the Inaugural Global Business Summit on Belt and Road Infrastructure Investment for Better Business, Better World and SDGs, hosted by the Government of Indonesia, brought together business leaders, policymakers and UN representatives to explore how infrastructure investments can support inclusive, green and sustainable growth. It seeks to leverage cross-border and cross-sector partnerships to deepen cooperation in sustainable infrastructure, green energy transition, and the empowerment of small- and medium-sized enterprises between businesses from China and Indonesia.
Caption: Delegates, UN partners and the Resident Coordinators participating at the launch of the the Sino-Indonesia Corporate Community Action Network.
Indonesia’s Ministry of National Development Planning (Bappenas) estimates that achieving the SDGs in the country by 2030 requires a total investment of US$ 8.7 trillion. With one fifth of this still to be identified, boosting private sector investment is critical to achieving Indonesia’s development ambitions and accelerating towards its ambitious 8% economic growth target. Speaking at the event, Deputy Minister of Investment and Downstream Industry Todotua Pasaribu said the government “was targeting around US$ 815 billion in high-quality direct investment, or approximately 15.7% above the current average growth over the coming five years.”
In support of this objective, the United Nations in Indonesia works closely with the Indonesia Global Compact Network (IGCN), to mobilize investments for national development priorities. With 154 members representing US$ 266 billion in annual revenues and over half a million workers, the local chapter of Global Compact operates at a scale that can “move the dial on development priorities”, said Gita Sabharwal, the UN Resident Coordinator in Indonesia, with IGCN member companies increasingly integrating Environmental, Social and Governance (ESG) principles into their core operations and board-level discussions.
From China to Indonesia and Beyond
China’s corporate sector has also been rapidly incorporating ESG principles into business models, with over 1,000 Chinese entities now members of Global Compact. With China’s dual carbon goals of peaking carbon emissions by 2030 and reaching carbon neutrality by 2060, corporations are integrating measures to become greener and more sustainable. These efforts are reflected domestically and increasingly also through China’s Belt and Road Initiative and Global Development Initiative. This has led to an expansion of investments into areas such as green infrastructure and renewable energy, while also promoting environmentally responsible investment across projects.
Through the Sino-Indonesia Corporate Community Action Network, the UN is helping to ensure investments are sustainable, demand driven and promote SDG progress.
Indonesia is already seeing a growing focus on green investment, which the Network was able to showcase and build on. For example, “Huayou will increase investment in Indonesia’s with new energy industry partners… creating over 100,000 jobs with a workforce localization rate exceeding 90%,” said Chen Xuehua, Chairman of Huayou Cobalt.
The UN Global Compact stands ready to support the initiative, Sanda Ojiambo, CEO & Executive Director said in her video message. “Sustainable infrastructure is no longer optional; it is a strategic imperative for long-term growth and resilience,” Ojiambo said.
A declaration issued at the event detailed a shared commitment to align projects with the Ten Principles of the UN Global Compact. These principles cover human rights, labour, the environment, and anti-corruption—and offer businesses a clear framework for embedding sustainability into their core operations.
“The UN sees the Sino-Indonesia Corporate Community Action Network as a vital platform to connect ideas with action, and ambition with implementation,” said Siddharth Chatterjee, the UN Resident Coordinator in China. “The Sino-Indonesia relationship is just the beginning, which we hope to expand to the rest of Southeast Asia for higher order results.”