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SMV MINISTRY OF FINANCE COLLABORATES TO INCREASE GREEN INVESTMENT THROUGH INNOVATIVE FINANCING FOR SUSTAINABLE DEVELOPMENT

25 JUNE 2024

Indonesia Infrastructure Guarantee Fund (IIGF), Indonesia Environment Fund (IEF)and PT Indonesia Infrastructure Finance/IIF which is the Special Mission Vehicle (SMV) of the Indonesian Ministry of Finance are synergizing in supporting efforts to increase green investment for sustainable development through a blended finance scheme , one form of innovative financing. This was proven by the signing of a Joint Agreement / Memorandum of Understanding (MoU) by the Main Director of IEF, Main Director of IIGF and President Director of IIF, witnessed directly by the Minister of Finance of the Republic of Indonesia, Sri Mulyani Indrawati, Director General of Treasury Astera Prima Bhakti and Director General of State Assets Rionald Silaban in the Mezzanine Hall of the Djuanda 1 Building, Ministry of Finance of the Republic of Indonesia, Jakarta on Tuesday (25/6).

The Minister of Finance of the Republic of Indonesia, Sri Mulyani, in her speech expressed her appreciation for this activity which has shown a collaboration between the SMV of the Ministry of Finance of the Republic of Indonesia, namely IEF, IIGF and also IIF, the results and impacts of which can be seen from upstream to downstream. This of course cannot be separated from our joint efforts to continue to encourage Sustainable Development Goals (SGD).

"Today represents a comprehensive collaboration from upstream to downstream, from various SMVs and BLUs to be able to use financial instruments and operational capabilities by prioritizing ESG principles in solving real development problems in our society. "This is a form of synergy and collaboration that I really appreciate which I will continue to ask to be strengthened, improved and continue to be creative in supporting community welfare through the respective mandates," said the Minister of Finance.

In line with this, the Main Director of IEF, Joko Tri Haryanto, in his speech said that IEF as the government's vehicle in mobilizing funding from various sources, requires very close collaboration with other stakeholders to form innovative and creative funding schemes.

"We hope that the collaboration and synergy between BLU and SMV will certainly bring efficiency and optimization of services provided to the community and all relevant stakeholders. "From a larger perspective, it is hoped that it can be a significant support in supporting the fiscal capacity of the APBN in facing the impact of the triple planetary crisis currently occurring, namely the climate crisis, energy crisis and biodiversity crisis)," added the Managing Director of IEF.

On the other hand, the President Director of IIGF, M. Wahid Sutopo, said at this activity that the synergy between IIGF, IIF and IEF is expected to encourage the implementation of blended financing for the provision of social infrastructure and can also increase the impact of utilizing Social and Environmental Responsibility programs ( TJSL) which can support climate change mitigation and adaptation actions and can support sustainable infrastructure development, especially social infrastructure which can provide benefits to the wider community.

"Through its mandate as a government guarantee provider, IIGF has also supported sustainable development efforts, one of which is through clean water management which has been provided to 6 (six) Drinking Water Supply System (SPAM) projects, namely Umbulan SPAM, Bandar Lampung SPAM, West Semarang SPAM, SPAM Pekanbaru, SPAM Jatiluhur I and SPAM Kariyan – Serpong. "It is hoped that this will help the community obtain clean water at affordable and sustainable prices," concluded Sutopo.

IIF President Director, Reynaldi Hermansjah, revealed that as a catalyst for sustainable infrastructure development, IIF fully supports this synergy in increasing green investment through blended financing to mobilize funding for infrastructure projects. "Through this synergy, we are optimistic that we can strengthen the impact of sustainable infrastructure development, not only in environmental aspects, but also in encouraging economic growth and improving community welfare," said Reynaldi.

Apart from this collaborative initiative, the activity was continued with a talk show discussing "Innovative Financing for Green Investment towards a Sustainable Environment" with speakers from IIGF, IEF, IIF, the Mayor of Semarang, representatives from regulators, Investors/Financing Institutions and NGOs/CSOs.

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