G20 is a multilateral cooperation group that comprises 19 countries and the European Union (EU). Indonesia, which is holding the presidency of the grouping this year, is currently hosting the G20 Summit in Bali.
The GBF Alliance would help develop international, private sector, and philanthropic capacity to undertake better blended finance, Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, said in a statement released on Tuesday.
“GBF (Alliance) will be based in Bali. We invite all party to cooperate since we do not have much time if we want to gather trillion amount of investment every year for Earth," he added.
The alliance partners include the blended finance task force, B Team, Glasgow Financial Alliance for Net Zero (GFANZ), UN SDSN (United Nations Sustainable Development Solutions Network), the Rockefeller Foundation, and the Upaya Indonesia Damai Foundation.
The GBF Alliance was launched in Badung, Bali, on Monday at the Tri Hita Karana (THK) Forum, which is a part of the Indonesian G20 Presidency’s events.
The THK Forum featured leaders in the field of business, finance, government, philanthropy, and academicians, who are capable of catalyzing the US$30-billion project for SDG financing.
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The GBF Alliance will cooperate with members and partners to determine the impact target and strategy that will be announced during the World Bank or International Monetary Fund meeting in 2023.
The alliance’s mission is to strengthen and expand the blended financing market by replicating the blended structure that has been found successful in developing capacity and handling inefficiencies.
The effort will be undertaken by developing requirement documentation, which will be adjusted based on the blended finance structure or mechanism, and replicating as well as expanding blended finance transactions that have proved successful.
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Moreover, it will involve uniting project owners and investors as well as developing a practice framework for national development financial institutions and areas in developing countries.
Yet another method would be implementing training programs for the government, the private sector, and philanthropic organizations on formulating blended finance.
Lastly, implementing blended finance approaches will require blended finance leaders to share their knowledge and encourage innovation as well as reformation.
“GBF is positioned to help improve blended finance in developing countries, including those that are less developed as well as developing small archipelago states," economic deputy at the National Development Planning Ministry (Bappenas), Amalia Adininggar Widyansanti, said.
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