Jakarta – Indonesia has just got a new friend in its efforts to drum up investment that will be positive for society and the environment.
Meet the Indonesia Impact Alliance (AII), initiated by Ford Foundation to bring together investors, entrepreneurs, and government to develop an impact investing ecosystem in Indonesia that allows businesses to gain financial returns while solving social and environmental problems.
“In Indonesia, the IIA will be unlocking a major opportunity. “With cross-sector collaboration and strong partnership we can leverage private capital to strengthen economies and reshape the way we use our markets to invest in our communities.” said Ford Foundation President Darren Walker during AII launch on 10 May 2023 in Jakarta.
The IIA’s main goal after the initial launch will be to increase direct investment into early-stage high-impact companies by scaling up Indonesian and foreign investors, as well as the Indonesian diaspora communities. It will also function as a convener, information center, and partner to support the development of impact investing policies in Indonesia.
The IIA is also supported by the Ministry of National Development Planning for the Republic of Indonesia and the United Nations Development Programme (UNDP) Indonesia.
The Asian Development Bank’s US Director Chantale Wong said climate change imposes food security concerns on Indonesia. Wong applauded the Indonesian government’s efforts to tackle global warming by planned early retirement of coal-fired power plants.
She, however, urged the government to continue reducing fossil-based energy subsidies. (I Made Sentana)