Bappenas encourages investors to use blended finance to achieve the SDGs

Indonesia’s commitment is to scale up innovative financing efforts such as blended finance as a source of finance to achieve the SDGs

Badung, Bali (ANTARA) – Amalia Adininggar Widyasanti, Deputy Economics at the Ministry of National Development Planning/National Development Planning Agency (Bappenas), has encouraged investors to use a blended finance program to help achievement of the Sustainable Development Goals (SDGs).

Blended finance is an optimal financing scheme that combines multiple sources of funding or funding into a single project, for example from government budget, private sector and donors.

“Indonesia’s commitment is to scale up innovative finance efforts such as blended finance as a source of finance to achieve the SDGs,” she said on Sunday during the Tri Hita Karana (THK) Blended Finance of the Indonesian Presidency of the G20 in Nusa Dua, in the province of Bali. .

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Blended finance is needed as the Organization for Economic Co-operation and Development’s Global Perspectives on Financing for Sustainable Development 2021 study estimated that the SDG financing gap would increase by 70% from $2.5 trillion at $4.2 trillion.

To this end, Widyasanti assured that the Indonesian government will continue to cooperate with all stakeholders, including international organizations, multilateral development banks, philanthropic organizations and investors.

This effort is made to achieve the Decade of Action towards 2030 which is in line with the inclusive principle of the SDGs.

Indonesia itself has become one of the pioneer countries by developing the Integrated National Financing Framework (INFF) which promotes the use of blended finance to achieve the SDGs.

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Blended finance is also leveraged through the SDG Financing Hub, which aims to synchronize financial and non-financial resources for investments aligned with the SDG agenda.

The blended finance mechanism should be termed as a public-private partnership as it unlocks more economic potential in any country.

In this case, she felt that private parties could bring industry-specific expertise and resources to help achieve lasting impact at greater speed and scale.

Apart from this, government partners are also expected to contribute capital to the program, which later the private sector can get greater social or environmental benefits from the investment.

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