Jakarta, 7 November, 2019 - The United Nations Development Programme (UNDP), in collaboration with the Indonesia Sustainable Finance Initiative (ISFI), Climate Bonds Initiative (CBI) and World Wildlife Fund (WWF) Indonesia on Thursday conducted a bootcamp learning on green bonds market in Indonesia.
The two-day training aims to boost the skills and knowledge of the participants surrounding the Indonesian green bonds market. Participants were from private banks, state-owned banks, municipal banks, as well as national and municipal government officials.
The training tackled the practical aspects of green bonds issuance as well as analysing the market and policy landscape. The bootcamp also provided a simulation of green bond issuance featuring underwriters, verifiers, and investors.
In opening the training, UNDP Deputy Resident Representative Sophie Kemkhadze reaffirmed UNDP’s support to harness innovative financing, such as green bonds, for the achievement of Sustainable Development Goals in Indonesia.
Rob Fowler, a green bonds specialist from CBI, stressed the increased importance of the SDGs as an indicator for investors and issuers alike. “With regards to the ESG (environmental, social, and governance) aspect of investments, actors across the financial sector are increasingly scrutinizing the impacts of investments towards the achievement of the SDGs.”
Among the stakeholders presenting their experience in green bond issuance in Indonesia, were OJK as the regulatory board for the Indonesian financial sector, Ministry of Finance and Bank Rakyat Indonesia (BRI) as issuers, and HSBC as an experienced underwriter. The Ministry of Finance shared their insights from the issuance of the world’s first sovereign Green Sukuk, with UNDP’s support and other partners. BRI shared its lesson learnt after issuing the first sustainability bond by an Indonesian bank. Both issuances were oversubscribed, signalling high demand for green investment in the international market.
The session wrapped up with a conclusion that the growth of the green bond market in Indonesia depends on two aspects: the creation of a supporting regulatory and fiscal environment, and prospective issuers taking the initiative in issuing green bonds.
UNDP Indonesia partners with various stakeholders in supporting the green finance market in Indonesia. Through technical assistance to the Ministry of Finance’s issuance of the sovereign Green Sukuk, UNDP supports stakeholders combine the potential of both green and Islamic financial instruments. UNDP also helps build the capacity of local actors to boost domestic issuances. Through events like the Green Bond Boot Camp Jakarta, it is hoped that parties from both the public and private sector will follow suit in developing innovative means to finance Indonesia’s target to the Nationally Determined Contribution (NDC) set in the Paris Agreement, as well as the SDGs.