2022 State Budget: Fiscal Policy and Structural Reform slide image

2022 State Budget: Fiscal Policy and Structural Reform

Innovative Financing: Sovereign Green Sukuk and SDGs Bond Sovereign Green Sukuk and SDG Bond No Issuance Value Green Sukuk Financed Sector Allocation (2018-2020) (Domestic and Global) 81% 1 Global Green Sukuk (Mar 2018) USD 1,25 billion 2 Global Green Sukuk (Feb 2019) USD 750 million 8% 6% 5% 3 Green Sukuk Retail (Nov 2019) IDR 1,46 trillion 4 Global Green Sukuk (Jun 2020) USD 750 million Renewable Energy 5 Green Sukuk Retail (Nov 2020) IDR 5,42 trillion 6 Global Green Sukuk (Jun 2021) USD 750 million 7 SDG Bond (Sep 2021) EUR 500 million SDGs Financing Needs in Indonesia In USD Billion, 2020-2030 8 Green Sukuk Retail (Nov 2021) IDR 5,00 trillion 800 27% 17% 11% 62% 49% Energy efficiency Resilience to Climate Change for Highly Vulnerable Areas and Sectors/Disaster Risk Reduction 2018 2019 2020 Sustainable Transport 9% 11% 7% 7% Waste and Waste to Energy Management 759 Sovereign green sukuk is Indonesia's main financing instrument for climate actions. • Total global green sukuk financing: USD 3.5 billion 700 568 Est. SDGs Financing Distribution In USD Billion, 2020-2030 Non-Government Government 4,710 588 500 517 500 453 44% 3,030 • Total green sukuk retail financing: IDR 11.88 trillion 396 400 347 302 39% • Green sukuk has financed various projects in 5 sectors and mostly for transportation projects. 404 300 261 227 192 316 343 372 200 • Rol issued its debut SDG Bond in September 2021, which was also the first issuance of sovereign conventional SDG bond in Asia. 100 171188 206 226 247 267 291 56% 61% BAU High 0 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 BAU High Source: Ministry of Finance Sour: APPENAS, DR, 20 124
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