Hon. Vivi Yulaswati, Deputy Minister for Maritime and Natural Resources, Ministry of National Development Planning of Indonesia joined the FfD Forum Plenary Session on “Integrated National Financing Frameworks (INFFs): Taking stock of national-level progress” held on Thursday, 25th April 2024 in New York.
The Deputy Minister highlighted the importance of the INFF approach and its role in addressing the SDG financing gap through innovative mechanisms like thematic bonds, including blue bonds, and faith-based and non-faith-based financing. Indonesia leveraged its INFF to increase stakeholder engagement, and the country is progressing towards SDG’s implementations through supporting initiatives like the development of a sustainable finance taxonomy. The Deputy Minister also underscored the importance of strong governance and stakeholder coordination for the ‘effective implementation’ of INFFs.
The full transcript of the speech is attached below:
Financing strategies for the SDGs have outlined in the INFF report that have been launched during Indonesian Presidency of G20 in 2022.
It is supported by the presidential regulations for the implementations and also underscores the importance of stakeholder's engagement through the SDG National Implementation Team. It's really highlighting the critical role of integrated financing strategies. The continuation of the INFF financing strategies implemented in 2023 remains critical. It involves building a robust institutional framework and hosting capacity-building events through the Financing Dialogue Forum, where topics included such as faith-based financing, impact investing, and other innovative financing approaches are also discussed.
Given the interconnected nature of the SDGs, progress in one indicator can drive improvements in others. So, we revised the SDG roadmap and analyzed it to show that indicators with high interconnectedness are generally linked to basic services like health and food security, safe water and sanitation, education, inequality, energy, decent housing, and the environment. This finding highlights the importance of the sector focus, particularly on financing, and also the coordinated approach to financing sustainable development.
Indonesia is actively working to breach the the SDG financing gap by promoting innovations such as thematic bonds, that's including the blue bonds that have been mentioned, and also faith-based and non-faith-based financing. There is a strong emphasis on encouraging innovative financing initiatives to support further progress for the SDG's implementations.
Stakeholder engagement is also super crucial. We support several entities like the Financial Service Authority of Indonesia to align the Indonesian sustainable taxonomy with the SDGs.
The taxonomy refines the standard definitions of economic activities, harmonizing economic, environmental, and social aspects with the SDGs. Additionally, BAPPENAS (The Ministry of National Development Planning, Indonesia) in collaboration with the Impact Investment Exchange, hosted focus group discussions to explore and plan for the issuance of a non-sovereign bond like the Orange Bond. This is to support the implementation of the gender mainstreaming.
The crucial phase of the INFF lies in its effective implementation. Strong governance and coordination among the stakeholders are the key. I hope this dialogue can strengthen a multistakeholder's engagement and inspire concrete actions for financing sustainable development.
I would like to thank the ECOSOC (United Nations Economic and Social Council) for organizing this event and for this opportunity to share.
I thank you.
