INCAS | Blog

Sustainable Finance, Climate Change, and Conflict: Q&A with INCAS Senior Expert Tri Susdinarjanti (Didien)

Written by Tri Susdinarjanti | Nov 12, 2025 6:28:20 AM

At INCAS - International Conflict and Security Consulting Ltd. , we believe that good research is much more than just data collection. It is a process that builds trust, reveals nuance, and helps turn insight into meaningful action. This is especially important when working in fragile or conflict-affected environments, where understanding complexity is key to creating lasting impact.

In this Q&A, we speak with INCAS - International Conflict and Security Consulting Ltd. Senior Expert Tri Susdinarjanti (Didien), who recently helped launch the Decarbonomics Center at Universitas Nahdlatul Ulama Yogyakarta (UNU Jogja) in Indonesia. With a background in conflict mediation, applied research, and ESG standards implementation, Didien reflects on how research contributes to conflict resolution, why climate change is a growing threat to global peace, and how sustainable finance could become a powerful tool for building resilience.

QHow does research contribute to resolving conflict?

Didien: The interplay between research and conflict resolution is dynamic. As a mediator, you need to listen with clarity to both sides of an issue, and research helps you reach that clarity. The more rigorous the research, the better you understand the dynamics or the history of a conflict. 

Conversely, research engagement over time helps build trust and trust improves the quality of research. Between 2004 and 2012, I frequently worked on research and facilitation in Indonesia’s North Maluku. It was only in my seventh year that people started to talk to me openly. At first, I was seen as an outsider, someone remote. But over time, as I returned and engaged consistently on different research topics, they began to share more. That deeper understanding helped me build trust, which in turn improved the quality and depth of the research. 

QWhat are the main drivers of conflict in Indonesia today? 

Didien: Currently, many conflicts are linked to natural resource management and agri-business. Often, communities find themselves in opposition to government agencies or companies. We see this in areas affected by coal and nickel mining, where operations lead to heavy air and water pollution. In other cases, land grabbing by palm oil companies is at the root of community tension, particularly in Sumatra and Papua. There is at times corruption in permitting with local government, which creates further resentment. 

There’s been a shift in the last twenty years towards this kind of conflict, as opposed to the conflict between communities that used to be prevalent. Indonesia transitioned to a more democratic form of government in 1998, after years of authoritarianism. The period that followed was very fragile, with a lot of inter-community conflict, particularly in eastern Indonesia. A largely political conflict led to clashes between different Muslim and Christian groups in the name of religion. It caused thousands of casualties. However, since the 2001 peace process, these tensions have eased, and communities have co-existed more peacefully. But today, the flashpoints are more often tied to environmental issues and resource extraction. 

Q: Is climate change the biggest threat to peace today? 

Didien: I believe it is. Climate change depletes natural resources, increases crop scarcity and threatens food security. So many aspects of our lifestyles are unsustainable. These pressures can lead directly to conflict. 

We are not doing enough to meet the threat. The 2015 Paris Agreement is a good starting point, and it laid out the framework for limiting global temperature rise to 1.5 degrees Celcius. Each country must prepare and update Nationally Determined Contributions (NDCs) to show how they plan to reduce emissions. In Indonesia, the government is drafting policies to guide its NDCs, but implementation remains a challenge. Partnerships are essential to help meet the targets.

Q: You and two colleagues officially launched the Decarbonomics Center, which focuses on sustainable finance and carbon management, at the Universitas Nahdlatul Ulama Yogyakarta (UNU Jogja) in August and you now serve as the Service and Impact Director. What is the vision behind the centre and what kind of impact are you hoping to achieve?

Didien: UNU is a relatively young university, where academics and industry practitioners can come together. My involvement with UNU began during a talk I had with its President. I was interested in sustainable finance, and how it could help to tackle the challenges of climate change and conflict. The President challenged me to start a centre to apply our research to the real world needs of clients, particularly in the private sector. 

Our goal is to support Indonesia in achieving its NDC target. We also help banks and corporations comply with ESG standards by offering decarbonisation roadmaps and training on carbon market readiness. 

We want to help businesses align with sustainability principles and play a role in the global movement to combat climate change. It will effectively serve as a kind of hub that brings together different stakeholders—government, business, academia and civil society. We hope in time that it will also help to plug the gap in financing that is aligned with ESG goals. 

We are also working to decarbonise small industries by providing practical guidance, such as on waste management. In the coming months, we are running workshops and online sessions to build momentum. 

Q: How can sustainable finance help reduce conflict?

DidienSustainable finance ensures that banks and companies apply ESG principles rigorously. Banks must assess their borrowers’ compliance with environmental and social standards. This makes companies more accountable, especially around pollution control and responsible land use. This, in turn, reduces the likelihood of conflict with local communities. 

Some banks have already made declarations that they will no longer finance specific industries, or they’re putting tight conditions on the loans they provide, to drive more financing towards green projects.  

However, we need to be realistic about the pace of change. Several years ago, I worked on a project where a local bank acknowledged it was still willing to finance industries like the palm oil industry, precisely because the international banks had pulled out. For them, it was an opportunity. This example shows that sustainable finance has great potential, but also that strong oversight and incentives are essential. 

Q: What kind of role can consultancies like INCAS play in using effective research to reduce conflict?

DidienMany companies struggle with the social dimension in  ESG—particularly when it comes to knowing how to address challenges related to human rights. Social issues require engagement with questions like gender, land rights, and human rights violations. Addressing these issues can lead to a better business environment and reduce conflict. But for many companies, integrating human rights considerations throughout the value chain, and fully aligning this process with their business activities, can be challenging. 

Consultancies like INCAS play a crucial role because they help companies connect high-level knowledge with practical application, helping them understand the importance of addressing the social dimension of ESG. Take gender and lending as an example. Involving women more meaningfully in lending brings important economic benefits—which, in turn, can reduce conflict. But how do you actually do it? Research helps us understand women's experiences, identify barriers, and develop policies that respond to them. From there, we can create practical tools or manuals for companies and make policy suggestions to governments.

INCAS also provides vital assistance to companies that wish to fully align their approach to security and human rights with best practice, with minimal disruption to their existing operations.

We work with clients from across the public and private sectors to turn research into action. Our diverse team allows us to make connections across disciplines and sectors, which is vital when addressing complex social problems. Research is not just about collecting data. It's about creating the conditions for better decisions and better outcomes.