Jakarta, 3rd December 2021- The United Nations (UN) in Indonesia publicly launched a joint UN Programme today, entitled Accelerating Sustainable Development Goals (SDGs) Investment in Indonesia – ASSIST, paving the way for much-needed fresh investment and financing mechanism to fill SDGs funding gap in Indonesia. The Programme utilises various innovative financing instruments from government and non-government sources (e.g., public, private, and Islamic capital) to fill the SDGs funding gap of USD 4.7 trillion.
With strategic leadership from the Head of the UN in Indonesia, Ms Valerie Julliand, four UN agencies on the ground – United Nations Development Programme (UNDP), United Nations Environment Programme (UNEP), United Nations Children’s Fund (UNICEF), and United Nations Industrial Development Organization (UNIDO) work side-by-side with the Government of Indonesia to closing the funding gap for SDGs.
On this occasion, Ms Julliand said, “Achieving the SDGs requires the mobilisation of tremendous resources and capital. And the key to achieving this rests both in leveraging existing financing and unlocking new financing sources. It is incumbent upon us to ensure that we carry forward the spirit of collaboration and partnership for this Decade of Action. This public launch comes only two days after Indonesia began its presidency of the G20. It is an opportune moment to discuss SDG financing, which Indonesia has committed to keeping on the agenda under the finance track. I express my gratitude to the Government of Indonesia for its cooperation in implementing the ASSIST Joint Programme.”
Under the Programme, the UN will collaborate with the government to develop thematic bonds, blended finance instruments, and SDG-linked loans with other stakeholders: local financial institutions, development partners, association and non-state actors. The Programme also provides capacity building for relevant stakeholders, including women- and youth-led Small and Medium Enterprises (SME), and provides them with the knowledge to access financing to boost green and sustainable businesses.
Mr Luky Alfirman, Director General of Budget Financing and Risk Management, Ministry of Finance, expressed his support to the programme in his remarks. “I believe this programme will enhance multi-stakeholder collaboration, encouraging more actors to also take part in re-orienting investments and efforts towards accelerating the SDGs achievements. This collaborative and strategic move also highlight Indonesia’s innovative and forward-thinking approach to raise new funds for SDGs projects and keep us on track for the final 9-year sprint towards 2030.” said Mr Alfirman.
“The funding gap for Indonesia's SDGs has grown as a result of the COVID-19 pandemic. The country must strike a balance between regaining economic strength and advancing toward the Sustainable Development Goals. To move forward, it is imperative that we make additional investment in the SDGs at this transitional point.” said, Ms Vivi Yulaswati, Ministry of National Development Planning / Bappenas as The Head of SDGs Secretariat]
“The public and private sector including financial institutions, businesses, and civil society have a crucial role to play in closing the financing gap on SDGs. As a lead agency, UNDP is pleased to be part of this distinct multi-stakeholder collaboration that can unlock much-needed funding opportunities to fast-track SDG achievement in Indonesia,” said Mr Norimasa Shimomura, Resident Representative of UNDP Indonesia.
At the launch, the panelists from the program's key partners emphasized the importance of multi-stakeholder collaboration and partnerships in addressing the challenges of SDG investment. The Ministry of Finance’s Director of Government Debt Securities, Deni Ridwan underlined the need to raise additional capital for SDGs financing, especially in the wake of the COVID-19 pandemic.
Enrico Hariantoro, Group Head of Integrated Financial Services Sector Policy of the Financial Services Authority (OJK), said that progress had been made to ensure Indonesia’s financing ecosystem is supportive of the SDG financing needs. Kris Hananto, Head of Compliance Division of Bank Rakyat Indonesia (BRI) and Emmy Astuti, Executive Director, Association for Women in Small Business Assistance shared how businesses can take significant roles in the collaborative effort to mobilize funds for SDGs.
ASSIST Joint Programme got underway in April 2021 upon successfully submitting a project proposal to the Joint SDG Fund, led by UNDP. Indonesia was one of four countries that received a total of USD 9.7 million in funding out of 155 proposals from more than 100 countries globally.
With the support of the ASSIST Joint Programme, the Indonesian government has issued the country's first sovereign SDG Bond successfully with the amount of EUR 500 million. The Programme will continue collaborating with other organisations to develop and implement more innovative financing instruments for sustainable development.
About the UN Joint SDG Fund
The Joint SDG Fund supports countries to accelerate their progress towards the Sustainable Development Goals (SDGs) and to deliver on the commitment of the 2030 Agenda to leave no one behind. They are providing a new generation of Resident Coordinators (RCs) and United Nations Country Teams (UNCTs)
with a critical instrument to incentivize the adoption of new solutions for longer-term sustainability. UN Joint SDG Fund is operated with contributions from the following donor countries: Denmark, the European Union, Germany, Ireland, Luxembourg, Monaco, the Netherlands, Norway, Portugal, Spain, Sweden, and Switzerland.
About the United Nations in Indonesia
The United Nations (UN) is an international organization founded in 1945. It is currently made up of 193 Member States. The mission and work of the United Nations are guided by the purposes and principles contained in its founding Charter. In Indonesia, the UN is committed to supporting the Government of Indonesia in the achievement of the Sustainable Development Goals (SDGs) by 2030. The UN Country Team is led by the UN Resident Coordinator (RC for short) the highest-ranking representative of the UN development system at the country level. RCs led UN Country Teams in consultations with the Government to define and agree on the UN strategic response to the Government’s development priorities in implementing the 2030 Agenda. The Resident Coordinator is the designated representative of – and reports to – the UN Secretary-General.
The United Nations Development Programmes (UNDP) is the leading United Nations organization fighting to end the injustice of poverty, inequality, and climate change. Working with our broad network of experts and partners in 170 countries, we help nations to build integrated, lasting solutions for people and planet. Learn more at www.undp.org or follow at @UNDP
The United Nations Environment Programme (UNEP) is the leading global environmental authority that sets the global environmental agenda, promotes the coherent implementation of the environmental dimension of sustainable development within the United Nations system, and serves as an authoritative advocate for the global environment.
UNICEF works in some of the world’s toughest places, to reach the world’s most disadvantaged children. Across 190 countries and territories, we work for every child, everywhere, to build a better world for everyone. For more information about UNICEF and its work for children visit www.unicef.org. Follow UNICEF on Twitter and Facebook.
United Nations Industrial Development Organization is a specialized UN agency whose mission is to promote and accelerate inclusive and sustainable industrial development (ISID) in Member States for poverty reduction, inclusive globalization and environmental sustainability: www.unido.org