Aside from its engagement as a corporation, IIGF through the IIGF Institute, a think-tank unit under the umbrella of the company, also participated in various discussion forums highlighting the importance of support for water sector infrastructure, especially with respect to the financing aspect, in the international event.

IIGF CEO, M. Wahid Sutopo pointed out that IIGF’s engagement in the highest echelons of the WWF would strengthen collaboration in providing infrastructure, particularly in the water sector among stakeholders, including the private sector, investors, and international lenders.

Improved water infrastructure is expected to spur public prosperity and economic growth. “The provision of clean water infrastructure is part of the endeavour to mitigate the impact of climate change in the form of land subsidence as a result of the massive utilization of ground water in several big cities in Indonesia. Apart from that, the development of water infrastructure can also lead to improved sanitation and community health,” Sutopo said.

IIGF partook in the discussion forum with the topic, “Making the green investment case for innovation to achieve water resilience and improved governance”, with the company’s CEO being a source person along with other source persons, including the director of international financial institutions for development-environmental, project management and international development finance expertise in the public and private sector, water, economy and climate change global lead at the World Bank, chief director of the Indonesian Environmental Fund (BPDLH) and deputy head of the Indonesian Tap Water Companies Association (PERPAMSI).

In the presentation themed “Opportunity for utilizing green financing instruments in the water sector”, Sutopo explained the significant role that IIGF plays in accelerating and strengthening water infrastructure projects in Indonesia, as reflected in the support from guarantors of the six water projects whose financing was conducted through the Public Private Partnership (PPP) scheme, involving SPAM Umbulan,  SPAM Jatiluhur, SPAM Karian Serpong, SPAM Bandar Lampung, SPAM Semarang Barat and SPAM Pekanbaru.

Prospects

Every Monday

With exclusive interviews and in-depth coverage of the region's most pressing business issues, "Prospects" is the go-to source for staying ahead of the curve in Indonesia's rapidly evolving business landscape.

View More Newsletter

By registering, you agree with The Jakarta Post's Privacy Policy

Sign Up

Thank You

for signing up our newsletter!

Please check your email for your newsletter subscription.

View More Newsletter

The six water projects required an investment totalling Rp 7.87 trillion, with a total capacity of 15,580 l/s and the water flow benefiting 5 million people in Indonesia.

“Strategic planning, stakeholder engagement, financing structure and operation excellence are among the crucial factors in supporting the success of implementing the water sector under the PPP scheme as part of creative financing in developing sustainable infrastructure,” Sutopo opined.

On the same day, IIGF also took the role as a panellist in the discussion forum, 5A Session, with the topic “Revisiting of international water financing architecture (incl. new economic approaches) with emphasis on transparency, accountability, fairness and equity”, represented by IIGF’s COO, Andre Permana. Other panellists included a representative from Indonesia Infrastructure Finance (IIF), chief director, LPEM FEB Universitas Indonesia, ERIA and IHE Delft.

In his presentation, themed “Critical elements on enabling water financing for sustainability”, IIGF’s COO Andre Permana revealed a range of critical elements regarding water sector financing, especially under the PPP scheme. “Studying the lessons learned in the water sector previously, counting the balanced risk among the parties involved and commitment and capacity from the government and the authorities are crucial for the success of sustainable water sector infrastructure projects,” he said. 

The May 24-2024 event also saw IIGF take part in the forum discussion, 5D Session, with the topic “Special schemes and incentives promoting green finance” along with water, economy and climate change global lead at the World Bank, senior auditor of the National Development Planning Agency (Bappenas) and the project lead at Nature Conservancy.

Apart from taking an active part in the WWF’s major agenda, IIGF also explored collaboration with the French Embassy in Indonesia in the international event through the French Business Delegation Forum held at the French Pavilion, in the Country Pavilion of the 2024 WWF area, at the Bali Nusa Dua Convention Center.

In the discussion forum attended mostly by French business players, especially those focused on the water sector; investors and related stakeholders, IIGF’s chief director and business director gave presentations in the form of sharing knowledge related to IIGF’s mandate as the Finance Ministry’s Special Mission Vehicle (SMV) that advocates sustainable infrastructure through creative financing schemes and especially the implementation of water sector infrastructure projects.

IIGF started its engagement in the 10th WWF in 2023 by contributing to a range of side events in the Road to the 2024 WWF, especially in the sub-theme, “Sustainable water finance” comprised of several workshops and “Call for policy briefs” aimed at providing research-based policy recommendations for the stakeholders.

In the WWF side events, IIGF also held the 25th edition of the Indonesia Infrastructure Roundtable (IIR) on Sept. 16, 2023. The IIR carried the theme, “Amplifying partnerships: A collaborative drive to strengthen Indonesia's water sector”. The agenda, organized in collaboration with the IIGF Institute and Brawijaya University as knowledge partners, produced a range of recommendations related to creative financing for the water infrastructure sector.

This article is published in collaboration with Indonesia Infrastructure Guarantee Fund (IIGF)

Popular

Garuda Indonesia grounds 15 planes over maintenance, financial issues

Indonesia looking to convert more debt to rupiah

Government forms anti-extortion task force