Indonesia is advancing the establishment of its Sustainable Finance Committee (SFC), mandated by Law No. 4/2023, to help close the significant funding gap needed to meet its climate goals. Spearheaded by the Ministry of Finance, the Financial Services Authority (OJK), and Bank Indonesia (BI), the initiative aims to mobilize private and international capital for sustainable development. A key milestone in this effort was the launch of a White Paper, developed in collaboration with the UK-backed Green Finance Institute (GFI), which outlines governance structures and strategic actions to enhance the SFC's effectiveness. The document, unveiled on May 9, 2025, proposes strengthening investor confidence, establishing investment platforms, and creating mechanisms for blended finance. Despite policy momentum, Indonesia faces a large financing shortfall, with only 16.4% of the estimated funding for its climate goals covered by public spending between 2018 and 2023. The remaining US$240 billion must come from private and global sources. The White Paper, supported by research into investor perspectives, emphasizes the importance of institutional reform and coordinated regulatory frameworks to attract capital at scale. Collaboration with PT Sarana Multi Infrastruktur (PT SMI) further underscores efforts to drive green infrastructure development. Once formalized, the SFC is expected to play a central role in reshaping Indonesia’s financial system to support a resilient, low-carbon economy.Source: https://indonesiabusinesspost.com/4282/policy-and-governance/indonesia-moves-forward-with-sustainable-finance-committee-to-mobilize-green-investments (ICE GIACARTA)

Fonte notizia: Indonesia Business Post, 12 May 2025