Minister Of Finance: Indonesia Prioritizes Sustainability And Inclusivity In Development

Finance Minister Sri Mulyani Indrawati stated that Indonesia prioritizes the principles of sustainability and inclusivity in fulfilling its development commitments.

"Infrastructure development is not merely about connecting roads, ports, and cities, but also about mitigating its impacts," said Sri Mulyani after attending the International Conference on Infrastructure (ICI) 2025, as quoted from Instagram @smindrawati in Jakarta on Friday.

However, she continued, the success of this initiative cannot rely solely on the government; it requires the involvement of the private sector, strategic partnerships, and innovative financing.

To this end, Indonesia is continuously strengthening various supporting policies and instruments.

One of these initiatives includes creating an environmental, social, and governance (ESG) framework for infrastructure financing since 2022. Through this framework, the government has successfully attracted investments amounting to 18.8 billion US dollars.

Subsequently, the government also supports Public-Private Partnership (PPP) projects through the Project Development Facility (PDF), the Viability Gap Fund (VGF), and Government Guarantees via the Indonesia Infrastructure Guarantee Fund (IIGF) managed by PT Penjaminan Infrastruktur Indonesia (Persero), as well as Availability Payments for strategic projects.

In parallel, the government is developing the SDG Indonesia One platform. SIO is a blended finance platform operated by PT Sarana Multi Infrastruktur (PT SMI) under the Ministry of Finance.

Through SIO, the government has gathered investments amounting to 3.29 billion US dollars from commitments made by 38 partners, of which 396 million US dollars have been realized.

Another measure taken by the government is the issuance of green sukuk bonds, both globally and domestically.

Since its initial release in 2018, the government has issued green sukuk bonds totaling 6.6 billion US dollars (equivalent to Rp106.92 trillion at an exchange rate of Rp16,200 per US dollar) globally and Rp78.8 trillion domestically.

"Let us continue to collaborate in order to achieve Indonesia's development goals, while also preserving the environment and the Earth we inhabit," stated Sri Mulyani.

Tag: ESG Project Development Facility Sri Mulyani Indrawati