Bali Hosts Follow-Up Meeting for GBFA: Indonesia's Efforts to Bridge Climate Action and SDG Funding Gaps

Bali, INTI – The G20 Bali Global Blended Finance Alliance (GBFA) was initiated by Indonesia during its presidency of the G20 in 2022. This initiative has been recognized in the G20 Bali Leaders' Declaration (paragraph 43 and Way Forward paragraph 3). Following up on this, the Coordinating Ministry for Maritime Affairs and Investment (Kemenko Marves) held a hybrid meeting for GBFA follow-up on Thursday, July 4, 2024, in Bali.

Uniqueness and Advantages of GBFA

In his presentation, Coordinating Minister for Maritime Affairs and Investment Luhut B. Pandjaitan said that the GBFA has uniqueness and advantages as Indonesia's contribution to other developing countries through the South-South Cooperation platform. This initiative aims primarily to help bridge the funding gap for climate action and achieve Sustainable Development Goals (SDGs) in developing countries.

“South-South Cooperation through the establishment of the South-South platform aims to build a mutually reinforcing investment environment. The GBFA facilitates the creation of country platforms for developing member countries of the GBFA and other developing countries as well as the formulation of Climate Action Policies,” said Minister Luhut.

Capacity Building and Collaboration

Minister Luhut added that the GBFA will be a platform for capacity building by facilitating the development of standards, guidelines, financial or project financing templates, and capacity building related to blended finance policies under the South-South Cooperation. Additionally, the GBFA will serve as a forum and partnership for cross-entity, funding, and private sector collaboration, including investment.

“With the benefits of the GBFA, the drafting of the Articles of Agreement (AoA) and other stages need to be expedited so that this organization can become an international organization. The GBFA negotiation team that has been formed can immediately start negotiations and finalize the AoA,” emphasized Minister Luhut.

Urgency and Vision of GBFA

The urgency of forming the GBFA includes the significant financial gap to enhance climate action and achieve SDGs. Additionally, there are many systemic barriers such as the absence of policy frameworks, limited human resource capacity, and a lack of well-designed country platforms in developing countries to promote sustainable economic transition financing to achieve SDG targets. Deputy for Environmental and Forestry Management Coordination, Nani Hendiarti, revealed that the GBFA is one strategy to address the financial gap for climate action.

The GBFA was established with a vision to be a strong and dynamic global alliance dedicated to bridging the financing gap for SDGs and climate transition in developing countries by mobilizing large-scale blended finance. The GBFA's mission is to enable developing countries to mobilize blended finance as a tool to bridge the financing gap in achieving SDGs and climate goals.

Invitation to Participate in Indonesia Technology and Innovation 2024 (INTI 2024)

We invite you to participate and witness the Indonesia Technology and Innovation Exhibition 2024 (INTI 2024) at JI-EXPO from August 12-14, 2024. INTI 2024 is the largest technology and innovation exhibition in Indonesia. More detailed information can be followed through this link. By attending INTI 2024, it is hoped that the public will be inspired and motivated to continue developing digital skills and contributing to building a more advanced digital ecosystem in Indonesia.