Indonesia faces a significant challenge in financing the sustainable infrastructure needed to meet its Sustainable Development Goals (SDG) targets. SDG Indonesia One applies a blended finance approach to mobilise diverse funding sources for sustainable infrastructure development.
SDG Indonesia One: Integrated funding platform for sustainable infrastructure development
Abstract
Context and challenge
Copy link to Context and challengeIndonesia faces a significant challenge in financing the sustainable infrastructure needed to meet its Sustainable Development Goals (SDG) targets. Traditional funding mechanisms alone are insufficient to bridge the investment gap, creating an urgent need for innovative financing models capable of attracting private sector participation while addressing environmental and social priorities.
Approach
Copy link to ApproachLaunched by PT Sarana Multi Infrastruktur (Persero), SDG Indonesia One applies a blended finance approach to mobilise diverse funding sources for sustainable infrastructure development. The platform pools public funds, private capital and philanthropic resources into a diversified financing structure, reducing project risks and enhancing bankability. Its investment focus spans critical sectors such as renewable energy, clean water and sanitation, and sustainable transportation, ensuring alignment with Indonesia’s SDG commitments.
Beyond financing, SDG Indonesia One emphasises strategic partnerships with international institutions and private investors to strengthen capital mobilisation and project execution. These collaborations enhance technical expertise, support knowledge transfer, and encourage project pipelines that are viable, sustainable and socially inclusive. The platform’s model ensures that infrastructure initiatives not only attract financing but also deliver long-term environmental and social impact.
Capacity-building activities form a key component of the initiative’s success. By strengthening local capabilities in project preparation, structuring and implementation, SDG Indonesia One stimulates a more resilient and self-sustaining financial ecosystem, enabling Indonesia to maintain progress towards its sustainable development goals over the long term.
Outcome and implications
Copy link to Outcome and implicationsSince its launch, SDG Indonesia One has mobilised USD 3.3 billion from 37 partners in commitments, demonstrating strong investor confidence in Indonesia’s blended finance framework. It has successfully financed and supported around 111 projects from multiple sustainable infrastructure projects across key sectors, contributing directly to national SDG achievements. The platform has also helped build local expertise, ensuring that the benefits of sustainable infrastructure investment are durable and scalable.
Further information
Copy link to Further informationThis work is published under the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of the Member countries of the OECD.
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