Sri Mulyani Supports Investors To Implement ESG In The Development Of IKN Nusantara

Minister of Finance Sri Mulyani. (Photo: Doc. Antara)

Minister of Finance Sri Mulyani Indrawati supports investors to implement environmental, social, and environmental, social, and environmental, social, and governance (ESG)-based frameworks in the construction of the National Capital (IKN) of the Archipelago.

"If we want to withdraw funds from the private sector or internationally, the strategic way is to meet the quality standards including the ESG," he said at the Joint Finance and Health Ministers' Meeting (JFHMM) Launching of ESG framework and manual in Badung, Bali, quoted from Antara, Saturday 12 November.

Sri Mulyani said the government still prioritizes the participation of the private sector in building IKN Nusantara considering that the State Revenue and Expenditure Budget (APBN) will only finance around 20 percent of the total needs.

Meanwhile, in choosing investors who can contribute to funding and building IKN, Sri Mulyani said the government would look at the investment quality standards, including the implementation of ESG.

Not only from the investor side, he ensured that the ministries involved in the development of IKN Nusantara would also implement an ESG framework such as the Ministry of PUPR.

According to Sri Mulyani, this was done because building the Nusantara IKN was not just moving the center of government but at the same time creating a new way of life that prioritized sustainable aspects.

"Mr. President often says that this is not just moving but is a new way of life, including in terms of the green aspect," he said.

Moreover, the principles regarding ESG should be applied to infrastructure development in Indonesia, namely prioritizing environmentally friendly, not detrimental, social benefits and having excellent governance.

"I am certainly very happy that this principle will be built and grown," said Sri Mulyani.