ADB approves $150mn loan for Indonesia’s green recovery

Jakarta, Feb 17 (IANS) The Asian Development Bank (ADB) has approved a loan worth $150 million to support a facility that can accelerate Indonesia’s economic recovery, local media reported.

The facility, the Sustainable Development Goals Indonesia One-Green Finance Facility (SIO-GFF), will catalyse public and private fundings to support green and viable infrastructure projects, which would help Indonesia achieve the Sustainable Development Goals (SDGs), reports Xinhua news agency.

The SIO-GFF, the first of its kind in Southeast Asia, aims to finance at least 10 projects, with a minimum of 70 per cent of the financing to support green infrastructure and the rest to support the SDGs.

This facility will increase sustainable infrastructure development and accelerate Indonesia’s recovery from the Covid-19 pandemic by raising capital and creating jobs, said Anouj Mehta, head of the ADB’s Green and Innovative Financing Unit for Southeast Asia, quoted by Antara news agency on Wednesday.

With an innovative financing model that incorporates global green standards, the SIO-GFF will help Indonesia focus on climate-resilient infrastructure as it recovers from the Covid-19 pandemic, said ADB’s Senior Financial Sector Specialist Benita Ainabe.

“Learning from our experience in Indonesia, we hope to expand this approach to other countries in the region,” she added.

–IANS

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