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Indonesia to create regulation on blended financing
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National Development Planning Minister Bambang Brodjonegoro (The Jakarta Post/wienda parwitasari)
T
he government will create a regulation to accommodate blended financing -- the method of combining grants from donors with commercial funds -- to support Sustainable Development Goals (SDG) programs.
Such a regulation would allow the private sector to take over SDG projects from the government, said National Development Planning Minister Bambang Brodjonegoro in Jakarta on Wednesday, adding that for Indonesia, blended financing was important so that it could benefit from grants for SDG projects.
"For example, in a waste management project, the government gives the right to a private company as its partner to carry out the project, and the partner will manage the blended financing," he said at the State Palace in Jakarta.
Read also: RI eyes blended financing for infrastructureThe source of financing that would be mixed with other funds could be the government or commercial financial institutions, Bambang added.
During his visit to Indonesia in July, World Bank president Jim Yong Kim promoted blended financing, which had been implemented in several other countries, but it was totally new in Indonesia.
Kim also said that donors from Nordic countries were interested in disbursing their grants to be used for humanitarian projects in developing countries. (bbn)
