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Sustainable Green Finance Challenges

London, 26/06/2019 MoF - Minister of Finance Sri Mulyani Indrawati was one of the speakers at the Seminar on Sustainable Financing in Developing Countries: Challenges and Opportunities that became one of the topics at the G-20 countries meeting on Tuesday (25/06) in London.

She stressed the importance of green financing regulations, benchmarking instruments and to invite the private sector to be able to participate to boost the market.

However, Minister of Finance stated that green bonds issued by Indonesia were not fully green although they were quite attractive to the international market. Of the buyers' portfolios, 29% were bought by green investors and 71% were bought by regular investors.

"Although international investors' interest are quite high, I don't really see the reflection in terms of their preference being green and linked to the project that I'm going to enjoy a certain price premium for that," explained the Minister of Finance.

However, eventhough investors encouraged the Ministry of Finance to issue more green bonds, she is also concern for the investment manager's consideration on how to promote it, how much they will buy, the country to market, what instruments to issue and what is also important is the stability of the country. (bs/nr/ds)