This report, developed in collaboration with the Ford Foundation, provides a detailed assessment of Indonesia’s capital markets and investment landscape, focusing on the financing needs of MSMEs to support sustainable development. It delves into the impact-oriented capital demand and supply dynamics, examining the financing needs essential to bridge the gaps for sustainable development, which lay the groundwork for assessing the potential issuance of an Orange Bond in Indonesia. By aligning financial mechanisms with social impacts, Indonesia can achieve inclusive and sustainable economic growth, demonstrating the potential of Orange Bonds for sustainable development in emerging markets.