Global Blended Finance Alliance launch at G20 side event in Bali -
The Indonesian government launched the "Global Blended Finance Alliance" at the Tri Hita Karana (THK) Sustainable Development Forum 2022 on Sunday, November 13, 2022 at Bali Nusa Dua Convention Center, ITDC area, Bali. Coordinating Minister for Maritime Affairs and Investment (Menko Marves), Luhut B. Pandjaitan said in his opening remarks that this launch would build capacity across the government, private sector, and philanthropy to make a better mix.
"This alliance will be based in Bali and we invite all parties to partner with us. We don't have time to give up if we want to open trillions of investments every year. We need to do this for our future generations," said Coordinating Minister Marves in his opening remarks.
The Coordinating Minister for Marves welcomed the THK Forum as a concrete action step to accelerate investment in the Sustainable Development Goals (SDGs). "As co-host of the Tri Hita Karana Forum, the Government of Indonesia is proud to see that we have helped catalyze more than USD30 billion for projects and initiatives related to SDGs this year through blended finance solutions. This is three times what we did at the last THK Forum in 2018," added the Coordinating Minister for Marves.
But in addition, Indonesia is still experiencing financial gaps, especially in climate-related financing. Coordinating Minister Marves said during the 15th Conference of Parties (COP15) United Nations Framework Convention on Climate Change (UNFFC), developed countries have committed to the common goal of mobilizing USD 100 billion per year by 2020 for climate action in developing countries. In addition, around USD 3.3-4.5 trillion per year needs to be mobilized to achieve the 2030 SDGs Agenda.
"The Indonesian government has identified a fair and affordable transition from coal to clean energy as a national priority and has included an energy transition driven by sustainable financing mechanisms. In line with its global climate change mitigation goals, Indonesia has increased its NDC target by September 2022 and is committed to achieve net zero emissions by 2060 or sooner," said the Coordinating Minister for Maritime Affairs.
According to a release received by Voice of Indonesia on Sunday (13/11/22), Indonesia is currently finalizing cooperation negotiations with the International Partners Group led by the United States-Japan for the Equitable Energy Transition Partnership program.
"We are ready to implement programs towards phased-down including early retirement of coal-fired power plants for significant greenhouse gas reductions for more ambitious NDC targets. I am proud of the work that has been done to finance the transition to a clean energy system. This will require international funding to move faster," explained the Coordinating Minister for Maritime Affairs.
In addition, Indonesia has proven an increase in economic growth up 5.72 percent year-on-year in the third quarter. The Coordinating Minister for Maritime Affairs expressed his pride at the existence of blended finance solutions for Indonesia's nature which is included as the first sustainable landscape bond in the world and a new fund for biodiversity.
"We've also developed carbon finance regulations because we have rainforests, peatlands, mangroves and coral reefs that are incredible and need protection and we need to find ways to pay for it. I was delighted to see so many business and financial leaders attend today's hearing "Right now a more sustainable world is the best way to encourage growth and build resilience to economic shocks," concluded the Coordinating Minister for Maritime Affairs//VOI