ADFIAP International CEO Forum XVII Held, Strengthening DFI Collaboration

The annual event of the Association of Development Financing Institutions in Asia and Pacific (ADFIAP) International CEO Forum XVII was officially held with PT Sarana Multi Infrastruktur (Persero) or PT SMI as the host.

This year's forum is themed Building a Sustainable Future: The Crucial Role of DFIs in a Low Carbon Development Agenda, and will take place on 6-8 November 2024 at the Sofitel Nusa Dua Bali.

ADFIAP is an association whose members are development banks and financial institutions involved in development financing in the Asia-Pacific.

This forum is an activity that brings together the president directors of development banks and financial institutions that are members of ADFIAP to dialogue, exchange ideas, and collaborate to discuss current issues related to sustainable development, especially in facing the challenges of climate change.

This year's forum was attended by more than 150 participants who are ADFIAP members, PT SMI stakeholders, and special invited guests.

Through membership in ADFIAP, PT SMI is able to expand its network and build relationships with other financial institutions to collaborate and contribute to sustainable development.

Milestones of sustainable development in Asia-Pacific

On the first day of the forum, President Director of PT SMI Reynaldi Hermansjah, Chairman of ADFIAP Kao Thach, and Director General of State Assets of the Ministry of Finance, Rionald Silaban each delivered remarks in front of the delegates.

In his speech, Reynaldi said ADFIAP is a milestone in development financing in the Asia-Pacific region, and has united 94 member institutions in 41 countries since its founding in 1976.

"(ADFIAP's) steadfast mission to advance sustainable development has become the foundation for the progress of this region. We are very honored to host this important event and appreciate the trust given to us by ADFIAP," he said.

Reynaldi said Development Finance Institutions (DFIs) are important as the world grapples with the pressing challenges of climate change, biodiversity loss, and social inequality.

"The Indonesian government through PT SMI is committed to transforming into a complete DFI, by focusing on research-based soft loans and aligning our activities with the principles of People, Planet, Profit, and Prosperity, we aim to maximize our contribution to sustainable development," Reynaldi said further.

Meanwhile, Kao Thach emphasized the importance of the low-carbon development agenda, which is not only a policy framework, but also a moral imperative.

According to him, the main agenda of this forum is handling a number of intersecting factors, namely reducing carbon emissions, encouraging resilience to climate change, and encouraging economic and social progress.

"This agenda has been recognized globally as a way to reduce the impact of climate change, while offering sustainable solutions to eradicate poverty. The discussions that we will have, starting from a just energy transition to infrastructure, digital transformation, and water access," said Kao Thach.

Kao Thach admitted that he was proud of the commitment of his members in realizing low-carbon development, especially PT SMI.

"In Indonesia, our host PT SMI has published a sustainability statement stating their commitment to support the local government in reducing greenhouse gas emissions and achieving net zero by 2060," Kao Tach said.

He also highlighted PT SMI's commitment to reduce the portion of financing for coal-fired power plant projects, increase the portion of financing related to climate change mitigation, and provide financing and services to support the energy transition to clean energy.

Signing of MoU with strategic partners

PT SMI in this forum also signed a memorandum of understanding (MoU) with strategic partners.

This MoU also marks PT SMI's journey in further development to become a DFI in Indonesia.

In the first signing, the MoU related to the development of a trust fund with the Commonwealth and Development Office (FCDO) The UK Foreign program Towards Indonesia's Low Carbon Energy Transition (MENTARI).

This memorandum of understanding was signed by Reynaldi and UK FCDO representative Ianto Jones.

In addition, there was also an MoU between PT SMI and Kreditanstalt für Wiederaufbau (KfW) regarding cooperation in promoting green, social and sustainable bonds in Indonesia, which was signed by Reynaldi and KfW Indonesia Country Director Burkhard Hinz.

The event continued with a panel discussion with the theme Showcasing Indonesia Energy Transition towards Low Carbon Economic Development.

The panelists who spoke in the discussion session included Reynaldi, CFO of PT PLN (Persero) Sinthya Roesli, Country Director of Indonesia Resident Mission Asian Development Bank (ADB) Jiro Tominaga, and Director of Energy Conservation of the Ministry of Energy and Mineral Resources (ESDM) Hendra Iswahyudi.

In addition to the session, the forum also held other discussion panels that discussed the theme of sustainability strategy to the role of investment in building infrastructure.

In this ADFIAP International CEO Forum, PT SMI also presented a booth from Kreasi Tuli Indonesia which showed various batik and jumputan creations with premium quality.

Kreasi Tuli Indonesia involved deaf friends to create in an art performance that aims to increase confidence in their potential.

 

cnnindonesia.com