The president (Joko Widodo) often says that it is not just transferring (the capital city) but also developing a new way of life, especially regarding the green aspect.
Badung, Bali (ANTARA) - Indonesian Finance Minister Sri Mulyani Indrawati encouraged the implementation of an environmental, social, and governance (ESG)-based framework to attract investments for the development of Indonesia’s future capital city (IKN) Nusantara.

"If we want to attract (investment) funds from the private sector or international (institutions), the strategic attempt is to meet the (development) quality standards, including the (implementation of) ESG," she remarked here on Saturday.

The minister made the statement at the 2022 G20 Joint Finance and Health Ministers' Meeting (JFHMM) and launch of the ESG framework and manual.

The JFHMM is organized under the Sherpa Track to bolster global collaboration on pandemic prevention, preparedness, and response.

The minister remarked that the government highly encouraged the participation of the private sector in developing the future capital city since the state budget (APBN) would only finance about 20 percent of the development project.

Nevertheless, the government will review the investment quality standard, including the application of the ESG framework, in choosing which investors could contribute to fund and build the IKN, she remarked.

In addition to the investors, she ensured that ministries or public agencies involved in the construction of the IKN, such as the Public Works and Public Housing (PUPR) Ministry, would also apply the framework.

Indrawati remarked that the framework is implemented, as the construction of IKN Nusantara does not only aim to move the government center from Jakarta but also to encourage a new lifestyle that prioritized sustainability.

"The president (Joko Widodo) often says that it is not just transferring (the capital city) but also developing a new way of life, especially regarding the green aspect," she remarked.

The ESG principles must be applied to infrastructure development in Indonesia since it prioritizes environment-friendly aspects, benefits the society, and implements very good governance, the minister noted.

"Certainly, I am very happy that those principles will continued to be developed and improved," she remarked.

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Translator: Astrid Habibah, Uyu Liman
Editor: Rahmad Nasution
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