Jakarta. Sustainable financing is among the themes that will likely dominate the upcoming ASEAN Indo-Pacific Forum (AIPF), which is set to see attendance from global financial institutions and world leaders, according to a deputy minister.

ASEAN chair Indonesia is set to host the AIPF on Sep. 5-6. The two-day talks will put emphasis on sustainable financing and green infrastructure. Other topics to be discussed include digital transformation and creative economy. 

Deputy Foreign Minister Pahala Mansury said Friday that the top brass of the European Investment Bank -- the lending arm of the European Union (EU) -- as well as the Asian Infrastructure Investment Bank (AIIB) had confirmed their attendance at the AIPF.

“There are many areas where we can work together on sustainable financing. Banks in ASEAN have stated that carbon avoidance projects could qualify for sustainable financing. We hope ASEAN banks can take the lead and tell other financial institutions how that works,” Pahala told a virtual media briefing.

“There should be an agreement of norms regarding this matter [sustainable financing and carbon avoidance],” Pahala said.

Carbon avoidance refers to projects that focus on reducing the emission that we emit into the atmosphere, among others, by using renewable energy. According to Pahala, Indonesia is still waiting for Glasgow Financial Alliance for Net Zero (Gfanz) -- a global coalition of private financial institutions -- to confirm its AIPF attendance. 

Gfanz last November pledged to chip in some money under the Just Energy Transition Partnership (JETP), a $20 financing package to help wean Indonesia off coal.

Gfanz agreed to mobilize at least $10 billion in climate financing, while the rest of the money will come from the International Partners Group (IPG), a coalition of rich nations. Co-led by the US and Japan, the IPG encompasses Canada, Denmark, the EU, France, Germany, Italy, Norway, and the UK. 

Fellow ASEAN member Vietnam last year also announced it would get $15.5 billion in financing under a similar JETP scheme over the next 3 to 5 years.

“Hopefully, we hope Indonesia and Vietnam can lead a discussion that shows how JETP is something that is possible to do in ASEAN,” Pahala said.

Indonesia initially planned on releasing a comprehensive investment and policy plan on Wednesday, namely on the eve of the country’s 78th independence day anniversary. This document is expected to lay out the technical details for the JETP financing. Indonesia, however, decided to push back the investment plan’s release to later this year.

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