The Government of Indonesia through the Ministry of Finance and PT SMI seeks to achieve the SDGs through the establishment of an integrated platform called “SDG Indonesia One” which combines public and private funds through blended finance schemes to be channeled into infrastructure projects related to the achievement of SDGs.
With various experiences in managing various funds from donor/bilateral/multilateral institutions both in the form of grants, technical assistance and capacity building as well as strong support from the Government of Indonesia through the Ministry of Finance, PT SMI will be the implementing agency of this platform. PT SMI not only has the capacity to manage funds but also can accelerate deliverables through various innovative products and monitor the implementation of this project in the ground.
SDG Indonesia One is a platform that includes 4 (four) types of pillars that are tailored to the appetite of donors and investors, namely: Development Facilities, De-Risking Facilities, Financing Facilities, and Equity Fund. The platform aims to raise funding from investors, donors, and philanthropist to be channeled to projects in Indonesia that support the achievement of Sustainable Development Goals (SDGs).
The first pillar of the Development facilities is aimed at encouraging the preparation of infrastructure projects both at the national level and at the regional government level. With this development fund, the preparation of infrastructure projects will be better, both in terms of quality and quantity.
The second pillar is the De-risking facilities aimed at increasing bankability of infrastructure projects so that it is attractive to the private sector in this case commercial banks and investors to participate in infrastructure projects.
The third pillar is the Financing facilities aimed at encouraging and stimulate greater infrastructure financing, by attracting the participation of other parties such as commercial banks or private investors to be able to participate in infrastructure projects. Financing funds can play a role in the form of flexible financing products and function as closing the gap.
The fourth pillar is the Equity fund is intended to encourage the participation of private investors to be able to participate in infrastructure projects related to SDGs. With the existence of an equity fund, there will be a strengthening of capital capacity for new (greenfield) projects and can also act as asset recycling for projects that are already operating (brownfield).
With this platform, the Ministry of Finance and PT SMI will transform needs into opportunities for many parties to be able to participate in various infrastructure projects related to SDG achievement.
In addition, this platform also ensures the development of the infrastructure sector from the beginning until the availability of funding and its implementation in the field. By combining the right instruments, the execution of infrastructure development will be better so that it can encourage inclusive development by managing various stakeholders, paying attention to economic, social and environmental aspects and always prioritizing good governance.