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Govt, IIX to introduce orange bonds in Indonesia
The government is set to introduce orange bonds, which specifically addresses SDG 5 on gender equality, in coordination with IIX, with the private sector slated to lead the issuance of the latest thematic bond in Indonesia.
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Yanuar Nugroho (left), SDGs expert team coordinator at the National Development Planning Ministry (Bappenas) attends a joint press briefing on July 10, 2024 at Hotel Bidakara Jakarta with Impact Investment Exchange (IIX) COO Angela Ng to introduce orange bonds. (JP/Ruth Dea Juwita)
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ndonesia is set to introduce securities under the Orange Bond Initiative, the world's first asset class specifically designed for investments that aim to address gender inequality while being mindful of climate change impacts, by integrating sustainable finance principles in the capital market.
The initiative addresses the United Nations’ Sustainable Development Goal (SDG) 5 on gender equality, which is represented by the color orange, by mobilizing capital to support businesses and organizations that promote economic opportunities for women, especially in micro, small and medium enterprises (MSMEs), and enhancing financial access for women and other marginalized groups.
“There is limited financing support under thematic bonds for the MSME ecosystem, and the introduction of orange bonds aims to bridge these financing gaps and support the community and women-focused MSMEs,” Yanuar Nugroho, coordinator of the SDGs expert team at the National Development Planning Ministry (Bappenas), told a media briefing on Wednesday.
The country needed Rp 24 quadrillion (US$1.48 trillion) to close the gap in the financial sector to achieve its SDG targets, Yanuar continued, and the new bonds could address part of that financial need.
Read also: Global funds withdraw from Indonesian bonds: Bloomberg
“Bappenas supports the orange bonds. They are expected to play a crucial role in addressing the gaps by providing capital for projects focused on sustainability and gender equality,” he said.
Angela Ng, COO of Impact Investment Exchange (IIX), said orange bonds could mobilize around $10 billion and potentially empower up to 100 million women and gender minorities by 2030.
