Indonesia plans to launch a $1bn green investment fund to boost infrastructure developments that aid growth and help cut greenhouse gas emissions.
The investment fund will accelerate infrastructure development and drive food and clean water production along with reducing emissions.
Indonesia Finance Ministry senior adviser Edward Gustely said the government will put $100m into the fund with a further $900m from foreign governments including Norway and Australia and institutional investors, reports Reuters.
Indonesia’s green investment fund will not offer loans or grants but rather top-up funding needed for projects where a bank lender is seeking an additional equity injection.
“We would come in and play a catalyst role to ensure good projects with good asset quality, with good expertise and proper management, can be deployed and proceed, Gustely said, reports Reuters.
Indonesia has pledged to bring down its emissions by at least 26% from by 2020.