LocationsSDG Bond Project Site Visit to Yogyakarta: Empowering Youth for Sustainable Development
July 26, 2024
In a significant step towards sustainable development, the United Nations Development Programme (UNDP), the Ministry of Finance, and Ministry of Industry visited Yogyakarta, specifically to Yogyakarta Vocational High School for Technology Industry—a school administered by the Ministry of Industry and recipient of the 2023 SDG Bond issuance. This visit aim to sought inspiration and highlighted the success of collaborative efforts in sustainable financing, emphasizing the significant impact of SDG Bonds in Indonesia.
Students of Yogyakarta Vocational High School for Technology Industry Demonstration of Machine Processes
Following the tour, an engaging SDG Talkshow took place in the school hall. Students actively participated and paid close attention to discussions led by distinguished speakers from the school principal, Ministry of Finance, Ministry of Industry, and UNDP. The talkshow focused on the role of SDG Bonds in achieving the Sustainable Development Goals (SDGs). Over the past decade, Indonesia has achieved remarkable economic growth. However, challenges such as managing population growth, recovering from the pandemic's economic fallout, and addressing climate change remain. The financial requirements to achieve the SDGs were already significant before the pandemic, estimated at IDR 67 thousand trillion. Post-pandemic, this figure surged by nearly 70% to IDR 122 thousand trillion, with a financing gap of IDR 24 thousand trillion.
One innovative solution has been issuing thematic financial instruments like SDG Bonds. The Indonesian government has raised more than USD 10 billion through thematic bonds, with SDG Bonds alone generating over USD 1.2 billion dedicated to initiatives in climate change adaptation, social welfare, and the blue economy. By 2023, these efforts have reduced carbon emissions by 10 million tons and advanced education, health, and information technology sectors, including providing basic immunizations, educational scholarships, and connectivity infrastructure in remote areas.
"It is an honor for UNDP to support the Indonesian government on this journey. Through the ASSIST JP (Accelerating SDGs Investment in Indonesia Joint Programme), UNDP utilizes its network and expertise to support sustainable development financing, especially through the issuance of thematic bonds, including SDG bonds," said Nila Murti, ASSIST JP National Project Manager, UNDP.
Talkshow Session (Left to Right: Rr. Ening Kaekasiwi, ST, MP (Principal of Yogyakarta Vocational High School for Technology Industry); Nila Murti (ASSIST JP National Project Manager, UNDP); Chandra Wibowo (Head of Sub-Directorate for Development and Deepening of the Government Securities Market, Directorate General Of Budget Financing and Risk Management, Ministry of Finance); Yohanes Ari Tri Sambodo (Industrial Supervisor, Industrial Human Resources Development Agency, Ministry of Industry)
Yogyakarta Vocational High School for Technology Industry is one of the underlying projects for the 2023 SDG Bond issuance. This funding supports vocational education in industrial technology, aligning with Indonesia's goals for SDG 4: Quality Education and SDG 9: Industry, Innovation, and Infrastructure.
“Our school supports students to experience direct learning experiences at related companies. This ensures that our graduates are ready to enter the workforce after graduating, this is to achieve our goal to enhance quality education and reduce unemployment,” added Rr. Ening Kaekasiwi, ST, MP Principal of Yogyakarta Vocational High School for Technology Industry.
Group Picture with Students of Yogyakarta Vocational High School for Technology Industry
“The success of the education program we observed today, and the initiative to issue thematic bonds by the Indonesian Government is a part of the larger efforts by the collaboration of Government, private sectors, development partners, academics, and most of all – youths to achieve the SDGs,” said Chandra Wibowo, Head of Sub-Directorate for Development and Deepening of the Government Securities Market, DJPPR, Ministry of Finance.
The visit was wrapped up by an interactive pop quiz session where students actively participated in answering SDGs-related questions. The site visit showcased the importance of cross-sector collaboration with various stakeholders, including government, development partners, and other relevant stakeholders, to achieve the 2030 agenda for sustainable development and is expected to inspire more collaboration for the initiatives.
About ASSIST JP
ASSIST brings four UN agencies together to support the Government of Indonesia, to meet its SDG targets by taking proven and new financing instruments to scale through the provision pre and post transactions technical assistance for development of financing instruments and providing capacity building to relevant stakeholders to improve institutional capacities to access and utilize finance towards the achievement of the SDGs. The three components of ASSIST include: 1) Catalyzed the Issuance of Thematic Bonds at National & Subnational Level; 2) SDG-Linked Loans; and 3) Indonesia Impact Fund.