Indonesia launches Integrated National Financing Framework (INFF) Assessment to bridge SDGs financing gap
August 11, 2022
Bali, 9 August 2022 – The Government of Indonesia, in partnership with the United Nations Development Programme (UNDP) and United Nations Resident Coordinator (UN RC), today launched the Integrated National Financing Framework (INFF) Assessment, a critical financing strategy that can accelerate the country’s achievement of the Sustainable Development Goals (SDGs) .
Minister of National Development Planning (BAPPENAS), Suharso Monoarfa, whose ministry is in charge of developing the key strategy, said that the INFF Assessment will provide a holistic strategy to bridge the SDG funding gap and unleash new financing opportunities through public and private partnerships.
“Substantial financing is required to respond to today's sustainable development challenges,” said Mr Monoarfa during the launch, on the sidelines of the third and final G20 Development Working Group (DWG) meeting in Bali, Indonesia.
“The need for a holistic, integrated approach to financing recovery and medium- to long-term sustainable development is greater now than ever,” he added.
The INFF Assessment launching comes at an opportune moment for Indonesia as the country is currently chairing the G20 Presidency which brings together the world’s most economically powerful nations.
Indonesia is one of 86 countries developing an INFF and one of 40 that will put in place an integrated financing strategy within the next 12 months. As countries develop INFFs, they are driving forward more than 250 reforms designed to mobilise and align public and private finance with national sustainable development priorities, the SDGs and the Paris Climate Accord.
The INFF Assessment maps Indonesia’s financing landscape, outlining SDG financing needs, potential sources of both public finance and international and domestic private finance.
Countries are developing INFFs with the support of a growing number of development partners, including through the new INFF Facility, launched in April 2022 by UNDP, UN DESA, OECD, EU and the Governments of Italy and Sweden. In 2021, the G20 formally endorsed INFFs and established a framework for voluntary support to INFF implementation globally.
On the sidelines of the G20 DWG meeting, Kanni Wignaraja, UN Assistant Secretary-General and UNDP Regional Director for Asia and the Pacific, underscored the importance of the Facility as a primary vehicle for taking forward the G20’s support.
She also singled out Indonesia’s commitment to harnessing new and innovative financing sources for the SDGs.
"Indonesia also generated over 500 million dollars in new financing last year with its first SDG Bonds. With these thematic bonds, the country has demonstrated how both private and public Investment can and must be brought together in the pursuit of low-emission pathways to development,” she said.
Indonesia is already a leader in innovative financing: it was the first country in the world to issue a sovereign Green Sukuk, an Islamic bond designed to finance green investments, and has recently issued its first SDG bond.
The INFF Assessment brings together country-level market intelligence that pinpoints ten SDG-aligned Investment Opportunity Areas (IOAs), including in the areas of infrastructure, health, education, social protection, food and micro-, small-, and medium-sized enterprises.
The assessment was informed by a series of financing dialogues, engaging stakeholders from government ministries and agencies, as well as representatives from civil society organisations, businesses, philanthropic organisations and development partners. The report benefited from the insights generated from the dialogues, producing a financing strategy that identifies the most optimal policy options and innovative financing instruments, such as blended finance and impact investing, to bridge the SDG financing gap. This work has laid a strong foundation for wider collaboration on issues related to SDG financing in the future.
At the event, UNDP presented the latest INFF Sustainable Investment Stocktake, which details the innovative ways countries are using INFFs to shape financing for sustainable development. The report will inform DWG discussions and outcomes on the G20 Principles for Blended Finance and Private Finance in Developing Countries, Least Developed Countries (LDCs) and Small Island Developing States (SIDS).
Integrated national financing frameworks (INFFs) were first introduced by UN Member States in the 2015 Addis Ababa Action Agenda as a country-led approach to strengthen public and private financing for sustainable development. Through INFFs, countries are bringing together public and private actors, civil society and development partners to develop financing strategies, reforms and instruments that increase investment, manage risks and align finance with national sustainable development priorities and the SDGs.
About the INFF Facility
The Integrated National Financing Framework (INFF) Facility is a joint flagship initiative of the United Nations Development Programme (UNDP), the United Nations Department of Economic and Social Affairs (UN DESA), the Organisation for Economic Co-operation and Development (OECD), the European Union (EU) and the Governments of Italy and Sweden. The Facility responds to the demand for technical support for INFF implementation and provides a platform for countries to share their knowledge and experiences. The Facility’s ambition is to mobilise and channel new resources and partnerships to help countries realise the full potential of their INFFs and accelerate progress towards the SDGs.
Kamal Salehin, Communication and Strategic and Engagement Specialist, IFL, email@example.com
Tomi Soetjipto, Communication Specialist, UNDP Indonesia, firstname.lastname@example.org
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