Hong Kong and Indonesia have the potential to expand their cooperation in green finance and strengthen economic ties, according to Mari Elka Pangestu, Indonesia’s special envoy for international trade and multilateral cooperation. Speaking ahead of a lecture at the University of Hong Kong, Pangestu highlighted the complementary opportunities between Hong Kong’s financial expertise and the growing needs of the Association of Southeast Asian Nations (ASEAN) region.

Pangestu, who also serves as vice-chairwoman of Indonesia’s National Economic Council, emphasized Hong Kong’s important role as a conduit for mainland China’s investments into ASEAN countries. She noted that ASEAN is now Hong Kong’s second-largest trading partner, with merchandise trade between the city and the bloc growing at an average annual rate of 7.6 percent over the past five years, reaching HK$1.66 trillion (US$212 billion) in 2025. ASEAN member states include the Philippines, Indonesia, Malaysia, Singapore, Brunei, Thailand, Vietnam, Cambodia, Laos, Myanmar, and East Timor.

Looking ahead, Pangestu saw significant promise in aligning financial connectivity between Hong Kong and ASEAN, particularly in green bonds, sustainable finance, and infrastructure investment. She said the sharp increase in global fuel prices has intensified the region’s push toward renewable energy, creating new investment opportunities, including in electric vehicles. To support Southeast Asia’s energy transition, Pangestu underscored the importance of harmonizing green bond standards and mobilizing private capital.

Hong Kong’s common-law legal system and financial services expertise were also cited by Pangestu as valuable resources for Indonesia, notably in efforts to attract family offices and international investors. She noted that investors often prefer common law frameworks for providing clarity and certainty in dispute resolution, suggesting that Indonesian entities may turn to Hong Kong for legal and financial support.

Edward Chen Kwan-yiu, honorary professor of the University of Hong Kong’s business school, also stressed the need for stronger collaboration between Hong Kong and ASEAN. Chen advised the Hong Kong government to diversify investment sources for the North Metropolitan megaproject—a plan to develop a major technology hub spanning roughly 30,000 hectares along the mainland border—by attracting greater capital inflows from ASEAN.

Chen further highlighted Hong Kong’s position as the world’s largest offshore renminbi (RMB) center as a strategic advantage for trade with ASEAN. He pointed out that conducting transactions in renminbi offers lower borrowing and transaction costs compared to the U.S. dollar through direct currency exchange. In a related development, in June the People’s Bank of China, the Hong Kong Monetary Authority, and Bank Indonesia signed an agreement establishing a currency transaction framework to facilitate direct exchange and settlement between the Indonesian rupiah and the Chinese yuan for cross-border trade and investment.

Despite these advances, Pangestu acknowledged that renminbi settlement currently accounts for only about 10 percent of trade between Indonesia and China but indicated that its use is gradually increasing.