UNDP Indonesia, OJK Institute, and SDGs National Secretariat Join Forces to Boost Blended Finance Capacity

December 15, 2024
a group of people posing for a photo

Jakarta, 26 November 2024 — In a strategic move to accelerate sustainable development, UNDP Indonesia, in collaboration with the Financial Services Authority (OJK) Institute and National Secretariat of Sustainable Development Goals (SDGs) of the Ministry of Development Planning of the Republic of Indonesia (Bappenas), successfully concluded a comprehensive Blended Finance training program on 25-26 November 2024. The initiative aims to address critical financing challenges and mobilize innovative financial mechanisms to achieve Indonesia's sustainable development goals.

Bridging the Financing Gap
Southeast Asia continues to demonstrate remarkable economic potential, with Indonesia emerging as a key driver of growth and sustainable development. Recent data highlights the region's attractiveness, with over US$100 billion in foreign direct investment secured in 2023. However, achieving the SDGs remains a significant challenge, with Indonesia facing an estimated financing gap of US$1.7 trillion—a 70% increase from pre-pandemic levels.

The two-day training brought together financial institutions from across Indonesia to explore innovative financing approaches. Participants delved into the Integrated National Financing Framework (INFF) and blended finance mechanisms, critical tools for mobilizing sustainable investment.

"To address financing needs effectively, the Integrated National Financing Framework can serve as a valuable reference for aligning financial strategies with development planning," said Nila Murti, Head of Financing for Development of UNDP Indonesia.

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Innovative Solutions and Strategic Vision
The Indonesian Government, through OJK, has demonstrated commitment to sustainable development by implementing POJK No. 51/POJK.03/2017. This regulation encourages financial institutions to integrate Environmental, Social, and Governance (ESG) principles into their strategic planning.

Mulia Simatupang, Director of OJK Institute, emphasized the training's significance: "By enhancing participants' capacity to understand the fundamentals and practical implementation of blended finance, the training aims to equip financial institutions to better support the financing of high-impact projects."

Setyo Budiantoro, Manager of Economic Development Pillar from the National Secretariat of SDGs of Bappenas highlighted the critical role of blended finance in addressing Indonesia's financing challenges: "Indonesia's Integrated National Financing Framework strategically incorporates blended finance to align diverse funding sources and maximize impact. Initiatives like green bonds, SDGs bonds, and public-private partnerships demonstrate our commitment to innovative financing solutions."

The blended finance training represents a crucial step in mobilizing additional resources to support Indonesia's socio-economic development and climate commitments. By bringing together key stakeholders and exploring innovative financing mechanisms, UNDP Indonesia continues to play a pivotal role in driving sustainable development.

About UNDP 
UNDP is the leading United Nations organization in fighting to end the injustice of poverty, inequality, and climate change. Working with partners in 170 countries, UNDP helps nations to build integrated, sustainable solutions for people and the planet. Learn more at www.undp.org/Indonesia or follow at @undpindonesia. 

About the National Secretariat of SDGs, Bappenas
The National Secretariat of SDGs, under Indonesia's Ministry of National Development Planning (Bappenas), serves as the central coordinating body for implementing, monitoring, and evaluating the Sustainable Development Goals (SDGs) at the national level. It plays a pivotal role in aligning Indonesia's development policies with the global 2030 Agenda for Sustainable Development.

Media Contacts 

Nabilla Rahmani 
Head of Communication, UNDP Indonesia
Nabilla.rahmani@undp.org