The Indonesian government has pulled in US$18.8 billion in investment through several infrastructure financing instruments under the environmental, social, and governance (ESG) scheme.
According to Finance Minister Sri Mulyani Indrawati, the government established the ESG framework for infrastructure financing in 2022.
The framework serves as a guide for the government in implementing public-private partnership (PPP) financing schemes for infrastructure projects, she informed at the 2025 International Conference on Infrastructure (ICI) in Jakarta on Thursday.
She said that her ministry provides a Project Development Facility (PDF), a Viability Gap Fund (VGF) instrument, and a financing instrument with an Availability Payment (AP) scheme.
It also offers a government guarantee through the Indonesia Infrastructure Guarantee Fund (IIGF), she added.
According to the minister, all these instruments can support climate crisis mitigation and ensure that infrastructure projects continue to be developed on the principles of sustainability, even though they are big in scale and full of risks.
“To date, the fiscal support has succeeded in attracting an estimated total investment of US$18.8 billion. This figure covers various strategic sectors, from road construction, toll roads, energy, water, to other infrastructure,” she informed.
While the initiative has been running since 2022, Indrawati emphasized that the government’s commitment to inclusive and sustainable infrastructure development in Indonesia began long before.
Now, the initiative is ready to be utilized by existing and prospective investors for national infrastructure development.
She further revealed that the Indonesian government has collected an investment of US$3.29 billion through SDG Indonesia One, a blended finance platform run by PT Sarana Multi Infrastruktur (PT SMI) under the Ministry of Finance.
The investment is the result of commitments from 38 partners, whose realization has touched US$396 million, for 111 development projects and 7 financing projects.
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Translator: Imamatul Silfia, Yashinta Difa
Editor: Primayanti
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