1 / 11

April 23, 2019

April 23, 2019. C20 BREAKOUT SESSION QUALITY INFRASTRUCTURE INVESTMENT. www.theprakarsa.org. INDONESIAN INFRASTRUCTURE.

prosper
Download Presentation

April 23, 2019

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. April 23, 2019 C20 BREAKOUT SESSION QUALITY INFRASTRUCTURE INVESTMENT www.theprakarsa.org

  2. INDONESIAN INFRASTRUCTURE Indonesia government focus on infrastructure development with estimation of investment needed US$ 300 milion (Medium Term National Strategic Planning 2015-2019) for National Strategic Projects SECTOR WITH HIGHEST INVESTMENT WHERE IS THE MONEY FROM?

  3. HOW DO WE DEFINE QUALITY INFRASTRUCTURE INVESTMENT? PURPOSE • Leverage human development in all forms remain • Enhancement of public services • Connectivity among regions and rural communities • Clean and sustainable resources RESULT • Sustainable economic growth • Inclusive development • Increase gross domestic product and tax revenue • Reduce poverty and income inequality.

  4. BIGGEST PRIVATE FUNDED PROJECTS (7 OUT OF 10 BIGGEST PROJECTS ARE COAL-FIRED POWER PLANT) 10 Proyek Terbesar yang Melibatkan Swasta (1990-Juni2018)

  5. 98% OF ONGOING COAL POWER PLANT PROJECTS IN INDONESIA FINANCED BY INTERNATIONAL FINANCIERS 22 Coal-fire power plants to produce13,1 GW electicity. Total financing US$17,1 billion Only 2% of total financing (US$347 million)from local FIs: Bank Mandiri dan Indonesia Eximbank • 98% of total financing (US$16,7 billion) from international financier: • Export Credit Agency US$7,64 billion: 64% from Japan Bank for International Cooperation (JBIC) 31% China Export Import Bank (CEXIM) • Development bank US$3,3 billion: 93% China Development Bank and 7% Korea Development Bank • Commercial bank US$6,14 billion:57% Japanese banks, 14% Chineese banks, 10% Singaporean banks. 

  6. SOCIAL AND ENVIRONMENTAL COSTS OF INFRASTRUCTURE PROJECTS: A CASE OF CELUKAN BAWANG COAL POWER PLANT, BALI • Investor: China Development Bank (approximately US$700million) • Invalid and unrepresentative process of the approval of environmental impact assessment (AMDAL) • Inadequate land compensation due to improper and non-transparent processes • Destruction of livelihoods, farmers and fishermen lost 60% of income with harvest and catch being reduced due to pollution • Threat to public health with increase in respiratory illnesses, fever, headache • Environmental damage caused by coal waste residue that contains mercury – a threat to coastal area, dolphin, and in the long run will affect tourism industry in Bali PLTU Celukan Bawang

  7. FINANCING INFRASTRUCTURE TOWARDS FINANCING SUSTAINABILITY • Infrastructure investment must be in accordance with Paris Agreement and SDGs Goal • Investment and lending decisions should be taken based on environmental screening and risk assessment to meet sustainability standards • Appropriate regulatory framework on ESG standards. Government-led mandatory ESG reporting improve corporate risk management • OJK as part of Sustainable Banking Network • Indonesia among 8 emerging countries who have reached an advanced stage on sustainable finance, having implemented large-scale reforms and put in place systems for results measurement • These reforms require banks to assess and report on environmental and social risks in their lending operations and put market incentives in place for banks to lend to green projects. • Indonesian has released Green Bonds aim to finance infrastructure project. It remains a debate on how the funds are used to finance not-so-green infrastructure project

  8. THE LANDSCAPE OF SUSTAINABLE FINANCE REGULATION IN INDONESIA

  9. INDONESIA SUSTAINABLE FINANCE ROADMAP 2015-2019 2015-2019 Adfasdfsadfsafsdfsadfsdfsdfkjlsadjflsdajfljslkdfjlsakdjfksjdlfjlskdjflsdfjsl sdfsdfsfsdf 2015-2019 Adfasdfsadfsafsdfsadfsdfsdfkjlsadjflsdajfljslkdfjlsakdjfksjdlfjlskdjflsdfjsl sdfsdfsfsdf 2015 2016 2017-2018 2019-2024 2015-2019 Adfasdfsadfsafsdfsadfsdfsdfkjlsadjflsdajfljslkdfjlsakdjfksjdlfjlskdjflsdfjsl sdfsdfsfsdf 2015-2019 Adfasdfsadfsafsdfsadfsdfsdfkjlsadjflsdajfljslkdfjlsakdjfksjdlfjlskdjflsdfjsl sdfsdfsfsdf 2015-2019 Adfasdfsadfsafsdfsadfsdfsdfkjlsadjflsdajfljslkdfjlsakdjfksjdlfjlskdjflsdfjsl sdfsdfsfsdf

  10. QII and Compliance ESG Standards Labour rights Climate change Corruption Natural resources Pollution & waste Tax Gender Equality Tranparency and accountability Human Rights

More Related