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This business forum titled "Indonesia’s Innovative Financing Models for Sustainable Community Development" will focus on innovative financing strategies that enhance infrastructure development while directly supporting sustainable communities. The session will begin with discussions on Optimizing Regulatory and Institutional Frameworks to facilitate innovative financing that meets community needs. Participants will then examine Fiscal Strategies and Incentives designed to drive investment in sustainable community infrastructure projects. The forum will highlight Leveraging Public-Private Partnerships to deliver essential infrastructure that benefits local populations. Additionally, the discussion will address Government Guarantees to strengthen financing schemes for community-focused infrastructure development, as well as the role of Financial Supervision in enabling cross-border financing to attract necessary investments. Insights will be shared on how Japan supports Indonesia's sustainable growth through innovative financing mechanisms, showcasing successful collaborations that empower local communities. This forum aims to foster dialogue and collaboration among stakeholders to drive infrastructure projects that enhance sustainable community development in Indonesia. The session will conclude with a networking lunch, providing opportunities for participants to connect and explore further partnerships.

【Reflection】
The forum provided a highly meaningful platform for bringing together a diverse range of stakeholders public and private, domestic and international to explore innovative financing mechanisms for sustainable regional development in Indonesia. A broad array of schemes were introduced, including Public-Private Partnerships (PPP), Islamic finance, blended finance, and government guarantees, all of which effectively deepened participants’ understanding and sparked substantial interest.
Notably, the presentations by key representatives from Indonesia’s National Development Planning Agency (Bappenas), Ministry of Finance, Indonesia Infrastructure Guarantee Fund (IIGF), PT Sarana Multi Infrastruktur (PT SMI), and MUFG Bank offered practical insights and forward-looking perspectives grounded in deep expertise. Topics such as green bond issuance and the integration of Environmental, Social, and Governance (ESG) principles underscored the growing global relevance of sustainable finance.

H.E. Heri Akhmadi, Ambassador of the Republic of Indonesia to Japan, underscored the significance of this forum as a catalyst for advancing collaboration between Indonesia and Japan, particularly in the development of green infrastructure financing. He further emphasized the importance of enabling Japanese stakeholders to go beyond funding, by fostering deeper partnerships and knowledge exchange.

In alignment with the national aspiration to achieve 8 percent economic growth as stipulated in the 2025–2029 National Medium-Term Development Plan (RPJMN), Indonesia requires an estimated IDR 10,303 trillion in infrastructure investment. This substantial financing need underscores the imperative to strengthen innovative financing frameworks that extend beyond public funding, by harnessing private sector participation and support from development partners.
The Ministry of National Development Planning (Bappenas) has adopted innovative and participatory approaches as the foundation of its financing strategy for 2025–2029. Mr. Putut Hari Satyaka, Deputy Minister for Development Funding and Investment at Bappenas, emphasized that Indonesia has progressed beyond regulatory discourse, and is now prioritizing the creation of enabling spaces for open dialogue and bold experimentation — including at the subnational level.
Mr. Riko Amir, Acting Director of Government Support and Infrastructure Financing Management at the Ministry of Finance, highlighted the urgency of establishing a fiscal ecosystem that is not only conducive to investment but also supports the green transition. This includes integrating Environmental, Social, and Governance (ESG) principles into public sector projects.

Mr. Delano Dalo, Head of Public Financing Division 2 at PT SMI, shared insights on the management of SDG Indonesia One, an innovative platform designed to link strategic projects with green investment opportunities.
Meanwhile, Mr. Andre Permana, Director of Business at PT PII, elaborated on the institution’s pivotal role in advancing national development objectives. He emphasized efforts to enhance investor confidence through equitable risk allocation between the public and private sectors, and by improving project bankability. Government guarantees can be extended through Public-Private Partnership (PPP) schemes, particularly in key sectors such as healthcare, clean water, and renewable energy.
Mr. Nicholas Gandolfo, Director of ESG Finance, Asian Investment Banking Division at MUFG Bank, shared the bank’s experience in facilitating green financing flows to emerging markets, including Indonesia.

The Business Forum concluded with a series of One-on-One Meetings between Bappenas, PT SMI, PT PII, and Japanese counterparts to explore further avenues for bilateral collaboration. These discussions provided an essential platform for strengthening prospective cooperation. Ms. Rosy Wediawaty, Director of the Indonesia Pavilion, conveyed that the active participation of strategic stakeholders in this forum exemplifies the Pavilion’s role as a key venue for aligning Indonesia’s national development vision with global partnership opportunities."


【Post EXPO Initiatives】
The insights and connections generated through this forum are expected to serve as a powerful catalyst for accelerating sustainable development in Indonesia. Key takeaways including the promotion of PPP schemes, integration of ESG standards, and strategic utilization of government guarantee mechanisms are anticipated to enhance the transparency, credibility, and attractiveness of infrastructure investment, thereby encouraging broader international financing.
Looking ahead, deeper collaboration between Japan and Indonesia will be advanced through joint initiatives in capacity building, institutional development, and project implementation. Japanese expertise is already being leveraged across various programs, and its continued involvement particularly in priority undertakings such as the development of the new capital city, Nusantara is both timely and highly anticipated.
The real-world case studies presented during the forum provided actionable insights for both investors and development professionals, offering practical guidance that can inform future financial strategies and the design of PPP models. The visibility of successful examples will be instrumental in drawing further private sector participation and diversifying sources of investment.

As Indonesia charts a course toward inclusive and sustainable growth, enhanced international cooperation will be more critical than ever. Building upon the trust and momentum established through this forum, we remain committed to advancing regional development and prosperity through collaborative, future-focused partnerships.