This article examines the historical development of environmental education (EE) in Indonesia with emphasis on the non-formal sector, and applies its findings to the discussion on education for sustainable development (ESD), which seldom draws on case studies from developing countries. Local socio-economic and political conditions have made EE in Indonesia similar to "ESD" in terms of its topical scope involving various social issues, although whether it should be referred to as ESD remains unclear. In contrast to the existing concerns about ESD, it involves critical views on the prevailing models of (neo-liberal) economic development. This article also shows that EE, like ESD, is at risk of exploitation by vested interests.