The goal during that period is for collective fund and mixed financing
Badung, Bali (ANTARA) - ASEAN is currently directing the collective infrastructure development fund or ASEAN Infrastructure Fund (AIF) toward green infrastructure, Head of the Financial Ministry's Fiscal Policy Agency, Febrio Kacaribu, said at a media briefing here on Monday.

This is because the demand for ASEAN green infrastructure has increased, which has led to discussions of shifting the AIF brand to ASEAN Green Fund.

The use of capital strengthened by ASEAN Green Fund will be responded to by various financing from other institutions such as Asian Development Bank (ADB) and Asian Infrastructure Investment Bank (AIIB).

The development of the funding institution is expected to strengthen investment financing for green infrastructure in ASEAN region.

This is one of the methods to develop ASEAN unity given its focus on equalizing financing. With this, ASEAN infrastructure funding will not just be given to Indonesia and other privileged countries.

For energy transition funding, ASEAN has developed a green taxonomy to involve the finance sector as well as AIF, Kacaribu informed.

AIF is a funding institution initiated by ASEAN since 2008.

"The goal during that period is for collective fund and mixed financing," he explained.

AIF has been running for several years. However, one of the issues is that two-thirds of the funding benefit is given to infrastructure projects in Indonesia.

Thus, in the future, ASEAN will try to revive AIF by prioritizing the climate change agenda.

This is because the current infrastructure is gearing toward that agenda. For instance, the energy sector has transitioned toward renewable energy while green infrastructure exists for climate change adaptation or mitigation.

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Translator: Agatha O V, Fadhli Ruhman
Editor: Sri Haryati
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