Jakarta, December 9, 2024 – The Ministry of Finance’s Fiscal Policy Agency (BKF) hosted the 2nd Focused Group Discussion (FGD) on Climate Blended Finance (CBF) Framework. The implementation of this FGD is a follow-up to the 1st FGD held in October 2024 to deepen the Climate Blended Finance framework. In this 2nd FGD, all participants gained insights through sharing and learning success stories of Climate Blended Finance implementation across four priority sectors: water, energy, AFOLU (Agriculture, Forestry, and Other Land Use), and food. Participants were also encouraged to build pipeline connections to explore future opportunities.
Through the Focused Discussion 2 on Climate Blended Finance (CBF) Framework, Eko, Coordinator of NDA-BKF Secretariat MoF, delivered the opening speech highlighting that a key achievement of the recent Climate Blended Finance (CBF) event was the overwhelming interest and enthusiasm expressed by several organizations to host the next session. This notable outcome serves as a strong indicator that the series of CBF events has successfully delivered tangible value and benefits to all participants and stakeholders involved.
The event was attended by various stakeholders, including government agencies, green finance institutions, banks, and international organizations. Aiming to be a collaborative platform to exchange insights, identify challenges, and uncover opportunities for innovative financing mechanisms.
Four speakers from the relevant institutions were also present at the event. Representing BPDLH, Mulkan, Head of FundRaising and Service Development Division, emphasized that “Matters relating to fiscal policy need to be further utilized as interventions to increase leverage in the application of climate blended finance in Indonesia.”
Irman Boyle, Head of Advisory at PT Indonesia Infrastructure Finance (IIF), emphasized the importance of assessing investment demand rather than solely focusing on funding availability. He also stressed the need for collaboration among multiple parties to integrate various funding sources.
“Matters relating to fiscal policy need to be further utilized as interventions to increase leverage in the application of climate blended finance in Indonesia,” concluded Sylvi J. Gani, Director of Financing and Investment at PT Sarana Multi Infrastruktur (SMI).
And from BNI, Poppy Irmasari as Head of ESG Management Department emphasized that “In implementing climate blended finance, Bank BNI has done it in the plantation sector, namely supporting the agricultural sector. Although often considered as a commodity that is less environmentally friendly, this is done in the corridor of international products. Like Bank BNI which requires borrowers who have considered environmental, social, and governance responsibilities.”
The event also was moderated by Lenny Hidayat, a partner at Greenwise Consulting.
“The role of Climate Blended Financing as one of the funding options and its implementation is crucial. This will be catalyzed by the BKF, which is adjusting institutions to merge into a specialized institution or ministry,” said Lenny Hidayat.
According to Lenny, the green financing ecosystem in Indonesia is set to grow further, supported by the funding agreement of USD 350 billion for developing countries announced during COP29.
