Indonesia encourages increased accessibility financial instruments

Jakarta (ANTARA) - Indonesia is pushing to increase the accessibility and affordability of sustainable financial instruments at the third Sustainable Finance Working Group (3rd SFWG) under Indonesia's G20 Presidency in Bali on June 14-15, 2022.

The meeting was officially opened by Director of International Customs and Excise Cooperation, Directorate General of Customs and Excise, Ministry of Finance Anita Iskandar representing the G20 Presidency of Indonesia.

"To encourage and support the green transition mechanism, the Indonesian Presidency has prioritized the energy transition mechanism towards cleaner and affordable energy," Iskandar noted in a statement received in Jakarta, Thursday.

Iskandar remarked that these priorities included intensive policy discussions to improve accessibility and affordability in the formulation of the policy of Energy Transition Mechanism (ETM).

In encouraging increased accessibility and affordability of sustainable financial instruments, members highlighted the importance of increasing the use of digital technology to reduce the burden of operational costs in sustainable finance practices, especially for the Small and Medium Enterprises (SME) sector, as well as encouraging the government to help companies adapt Sustainable Supply Chain Finance (SSCF).

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Moreover, several members highlighted the importance of increasing support and role for SMEs as well as encouraging the role of Multilateral Financial Institutions/Multilateral Development Banks (MDBs) and International Organizations in providing financial support and assistance for capacity building for developing country groups.

Meanwhile, accessibility can also be increased by using the support of the banking system that involves the role of local and national banks as partners in the implementation of blended finance.