Gaet More Financing, ASEAN Infrastructure Fund (AIF) Will Change 'Green'

Head of the Regional and Bilateral Policy Center of the Ministry of Finance (Kemenkeu) Yogi Rahmayanti. (Photo: Andry Winanto / VOI)

JAKARTA The Indonesian leadership in ASEAN 2023 will be an important milestone in changing the direction of the ASEAN Infrastructure Fund (AIF) towards green funding (green) in the region.

Head of the Regional and Bilateral Policy Center of the Ministry of Finance (Kemenkeu) Yogi Rahmayanti said this strategy is in line with global developments that apply environmental principles in the implementation of development.

"We will also encourage this AIF towards a green financing concept," he said when met in Jakarta, Monday, August 21.

Yogi explained that this commitment would be one of the focuses of discussion at the second ASEAN Finance Ministers and Central Bank Governments Meeting (AFMGM) meeting this week in Jakarta.

"AIF will be rebranded to become a Green Infrastructure Fund. All countries have agreed on this and will become a Join Minister Statement later," he said.

Yogi added that the strategy of converting conventional financing into green provides ASEAN with greater opportunities to continue to grow.

"Through the Green Infrastructure Fund, the potential for obtaining financing will be greater too," he said.

For information, the ASEAN Infrastructure Fund is a special fund formed by ASEAN member countries and the Asian Development Bank (ADB) to overcome regional infrastructure development needs by mobilizing regional savings, including foreign exchange reserves.

All AIF-funded infrastructure projects are also jointly financed by ADB funds. The ASEAN Infrastructure Fund is an integral part of ASEAN's efforts to strengthen regional connectivity.

Meanwhile, ADB is an AIF administrator who provides technical support for the management of collected funds and disbursed funds. The regional cooperation and operational coordination Division of ADB, Southeast Asia Department, is AIF's administrative focus point. ADB also acts as a co-financier and lender of record for loans withdrawn by member states.