Collaboration With International Institutions Needed To Help Financing Innovation

Director General (Dirjen) of Financing and Risk Management of the Ministry of Finance Suminto. (Photo: Doc. ANTARA)

JAKARTA - Director General (Dirjen) of Financing and Risk Management of the Ministry of Finance Suminto said collaboration with international and regional institutions could help the state in innovating financing instruments.

"Cooperation with the Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), and also the UN financial institutions can direct the country in innovating their financing," he said while speaking at the ASEAN forum entitled Promoting Sustainable Infastructure Development, Thursday, August 24.

According to Suminto, this strategy can be more complete by cooperating with the private sector which is expected to increase the potential for financing obtained.

"This can further attract private sector investment to enter," he said.

Suminto gave an example that Indonesia has collaborated with ADB in terms of the energy transition mechanism (ETM).

"This is useful for collaborating on financing schemes through PT SMI in mobilizing financing for our energy transition project," he said.

To note, Indonesia's transition to the financial sector has been carried out by issuing more segmented financing instruments with a green policy direction.

This can be seen from the green sukuk issue which has reached a value of 6.2 billion US dollars.

In addition, the government through the Ministry of Finance is also recorded to issue Sustainable Development Goals (SDG) bonds with a value of more than 577 million US dollars.