Bappenas & UNDP Launch Integrated National Financing Framework to Accelerate SDGs Achievement
Prime News - Wed, 10 August 2022
To accelerate progress in achieving the Sustainable Development Goals (SDGs), the Ministry of National Development Planning/Bappenas and the United Nations Development Program (UNDP) launched the Integrated National Financing Framework (INFF), which aims to bridge the SDGs funding gap by opening new financing opportunities through private-public partnerships.
Prior to the Covid-19 pandemic, the annual global SDGs financing gap – the amount of money needed to fulfill the SDGs goals – was USD 2.5 trillion. During and after the pandemic, that number reached USD 4.2 trillion. Indonesia’s SDGs financing gap is estimated to reach USD 1 trillion by 2030.
“Financing is needed to answer the sustainable development challenges of today. The need for a holistic approach to finance recovery and sustainable development in the medium and long term is greater than before,” the Minister of National Development Planning/Head of Bappenas Suharso Monoarfa said at the 3rd G20 Development Working Group (DWG) Meeting’s “Integrated National Financing Framework Sustainable Investment” side event in Bali on Thursday (9/8).
Indonesia has already laid out plans regarding its economic transformation for the future. The country has also taken steps towards developing a sustainable financing strategy by establishing a policy on financing frameworks. Indonesia is one of 86 countries developing an Integrated National Financing Framework (INFF) that will implement an integrated financing strategy next year.
“Indonesia possesses the tools and resources necessary [to carry out the INFF], but the challenge lies in bringing all stakeholders together to align their business processes and visions with the SDGs. We at Ministry of National Development Planning/Bappenas envision INFFs as something that will support Indonesia’s national parity planning and will help fund it by bringing in trillions of dollars needed to address the financing gap by 2030. I would like to emphasize that it is only eight years until 2030. The INFF will become an umbrella to cover all our financing initiatives towards achieving the SDGs goals on time,” Minister Suharso said.
The INFF can facilitate structured dialogue with ministry agencies and non-state actors to map out the landscape of sustainable development financing. Through proper dialogue, various sources of financing (both from public and private plans) can form the basis for developing strategies to increase investment. The INFF has shown promising potential, from identifying new and innovative instruments to leveraging mixed finance and impactful investments to help align approaches as philanthropy and impactful financing with the SDGs requirements.
About the Development Working Group
The Development Working Group (DWG) is one of the working groups of the 2022 G20 Indonesia Presidency which aims to discuss development issues in developing countries, least developed countries (LDC) and island countries (Small Island Developing States/SIDS). The DWG was first formed at the 2010 G20 Summit in Toronto, Canada with the main task ofdiscussing the G20 priority agendas in the field of development. The DWG identifies development challenges, and then formulates the best solutions to promote economic growth in developing and low-income countries as an effort to mitigate the global financial crisis.
During the Indonesian Presidency of the G20 in 2022, the DWG raised four priority issues, namely:
1) Strengthening Recovery from the Covid-19 Pandemic and Ensuring Resilience in Developing Countries, Underdeveloped Countries, and Archipelagic Countries through the three key pillars of MSMEs, Adaptive Social Protection, and Low-Carbon Green and Blue Economies
2) Increasing Private and Blended Financing in Funding Sustainable Development in Developing Countries, Underdeveloped Countries, and Archipelagic Countries
3) Renewing the Global Commitment to Multilateralism for Sustainable Development
4) Coordinating the progress of achieving the SDGs in the G20 and updating the G20 Development Commitments.
The DWG’s focal points, organized by the Ministry of National Development Planning/Bappenas, are the 1st DWG Meeting in Jakarta (24-25 February) and the 2nd DWG Meeting in Yogyakarta (24-25 May). A third DWG meeting will be held in Bali between 10 August to 12 August 2022. The G20 Indonesia Presidency will also hold the G20 Development Ministerial Meeting in Belitung on 7-9 September 2022.