Bali, 9 August 2022 – The Government of Indonesia, in partnership with the United Nations Development Programme (UNDP) and the United Nations Resident Coordinator (UN RC), launched the Integrated National Financing Framework (INFF) Assessment, a critical financing strategy that will accelerate the country’s achievement of the Sustainable Development Goals (SDGs).
Minister
of National Development Planning (BAPPENAS), Suharso Monoarfa, whose ministry is
in charge of developing the key strategy, said that the INFF Assessment will
provide a holistic strategy to bridge the SDG funding gap and unleash new
financing opportunities through public and private partnerships.
“Substantial
financing is required to respond to today's sustainable development challenges,”
said Mr Monoarfa during the launch event, on the sidelines of the third and final G20
Development Working Group (DWG) meeting in Bali, Indonesia.
“The
need for a holistic, integrated approach to financing recovery and medium- to
long-term sustainable development is greater now than ever,” he added.
The
INFF Assessment launching comes at an opportune moment for Indonesia as the
country is currently chairing the G20 Presidency which brings together the
world’s most economically powerful nations.
Indonesia
is one of 86 countries developing an INFF and one of 40 that will put in place
an integrated financing strategy within the next 12 months. As countries
develop INFFs, they
are driving forward more than 250 reforms designed to mobilise and align public
and private finance with national sustainable development priorities, the SDGs
and the Paris Climate Accord.
The
INFF Assessment maps Indonesia’s financing landscape, outlining SDG financing
needs and potential sources of both public finance and international and domestic
private finance.
Countries are developing INFFs with the support of a
growing number of development partners, including through the new INFF
Facility, launched
in April 2022
by UNDP, UN DESA, OECD, EU and the Governments of Italy and Sweden. In 2021, the G20 formally endorsed INFFs and established a framework for voluntary
support for INFF implementation globally.
On the sidelines of the G20 DWG meeting, Kanni Wignaraja, UN Assistant
Secretary-General and UNDP Regional Director for Asia and the Pacific,
underscored the importance of the Facility as a primary vehicle for taking
forward the G20’s support.
She
also singled out Indonesia’s commitment to harnessing new and innovative
financing sources for the SDGs.
"Indonesia also generated over 500 million dollars
in new financing last year with its first SDG Bonds. With these thematic bonds,
the country has demonstrated how both private and public investment can and
must be brought together in the pursuit of low-emission pathways to development,” she said.
Indonesia
is already a leader in innovative financing: it was the first country in the
world to issue a sovereign Green Sukuk, an Islamic bond designed to finance
green investments and has recently issued its first SDG bond.
The
INFF Assessment brings together country-level market intelligence that
pinpoints ten SDG-aligned Investment Opportunity Areas (IOAs), including in the
areas of infrastructure, health, education, social protection, food and micro-,
small-, and medium-sized enterprises.
The
assessment was informed by a series of financing dialogues, engaging
stakeholders from government ministries and agencies, as well as
representatives from civil society organisations, businesses, philanthropic
organisations and development partners. The report benefited from the insights generated
from the dialogues, producing a financing strategy that identifies the most
optimal policy options and innovative financing instruments, such as blended
finance and impact investing, to bridge the SDG financing gap. This work has
laid a strong foundation for wider collaboration on issues related to SDG
financing in the future.
At
the event, UNDP presented the latest INFF Sustainable Investment Stocktake, which details the innovative ways countries are using
INFFs to shape financing for sustainable development. The report will inform
DWG discussions and outcomes on the G20 Principles for Blended Finance and
Private Finance in Developing Countries, Least Developed Countries (LDCs) and
Small Island Developing States (SIDS).
About
INFFs
Integrated national
financing frameworks (INFFs) were first introduced by UN Member States in the
2015 Addis Ababa Action Agenda as a country-led approach to strengthening public
and private financing for sustainable development. Through INFFs, countries are
bringing together public and private actors, civil society and development
partners to develop financing strategies, reforms and instruments that increase
investment, manage risks and align finance with national sustainable
development priorities and the SDGs.
About
the INFF Facility
The Integrated National Financing Framework
(INFF) Facility is a joint flagship initiative of the United Nations
Development Programme (UNDP), the United Nations Department of Economic and
Social Affairs (UN DESA), the Organisation for Economic Co-operation and
Development (OECD), the European Union (EU) and the Governments of Italy and
Sweden. The Facility responds to the demand for technical support for INFF
implementation and provides a platform for countries to share their knowledge and
experiences. The Facility’s ambition is to mobilise and channel new resources
and partnerships to help countries realise the full potential of their INFFs
and accelerate progress toward the SDGs.
Press Contact
Kamal Salehin, Communication and Strategic and
Engagement Specialist, IFL, kamal.salehin@undp.org
Tomi Soetjipto, Communication Specialist, UNDP
Indonesia, suryo.tomi@undp.org
