| Company | KINETIK Affirma Capital Climate Transition Fund I |
| Sector | Multi-Sector |
| Country | Indonesia |
| Total Fund Size | USD 200m |
| PIDG Commitment |
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| Dates of PIDG involvement |
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In 2024, Indonesia was ASEAN’s largest economy and among the world’s highest emitters, with a power mix still dominated by coal and limited penetration of renewables. The country had committed to reduce emissions and accelerate renewable energy deployment, but private capital for climate infrastructure remains insufficient and risk perceptions remained high. The investment gap constrains deployment of renewables, circular economy solutions, sustainable water management and low-carbon logistics. Stronger climate-aligned investment is needed to support Indonesia’s transition plans and unlock scalable private-sector participation.
PIDG – through InfraCo – has invested a cornerstone limited partner invesetment into this single-country climate infrastructure private equity fund managed by Affirma Capital. The Fund targets USD 200m–300m size, investing USD 20–50m per investee into mid-stage Indonesian companies across renewable energy, waste/circular economy, water, transport/logistics and other climate enablers. PIDG will also provide health, safety, environmental and social (HSES), and impact services—including gender, climate and nature screening and monitoring—to strengthen the pipeline quality and investor confidence for mobilising additional capital.
Projects supported by the fund will provide improved access to essential services through cleaner energy and climate infrastructure investments. It will also encourage stronger labour, inclusion and workforce practices across investee companies, with anticipated job creation and improved community benefits as the portfolio is built.
Climate infrastructure can reduce emissions, improve resilience and support Indonesia’s net-zero transition, including renewables and circular economy solutions.
The fund will strengthen Indonesia’s climate infrastructure ecosystem by scaling mid-market companies, improving governance and operational performance, and supporting domestic supply chains.
The fund looks to demonstrate a scalable private equity model for climate infrastructure in Indonesia, raising the bar on ESG, HSES and impact practices.
PIDG will provide targeted TA support to strengthen investment readiness and standards, including impact measurement frameworks, HSES/ESG integration, gender lens implementation, and climate risk screening—improving portfolio performance and reporting quality.
The fund will integrate transition and physical climate risk considerations into investment screening and monitoring.
Investment processes will embed gender considerations including a requirement for senior female representation in the Indonesia investment team.
The fund will apply robust HSES requirements aligned with IFC Performance Standards and PIDG frameworks, including screening, due diligence, ESAPs and incident reporting strengthening accountability and implementation capacity.
