Closing the funding gap for the SDGs by 2030 is a global challenge.

GLOBAL

$6T annual investment needed to achieve the U.N. Sustainable Development Goals (SDGs) *$1.7 trn alone is needed in Asia*

-$2.5T annual shortfall of financing gap for the SDGs

-$50B private sector finance mobilized by official development finance in 2018-19. *In contrast, Developing Countries faces an additional shortfall of $1.7 trn in 2020 due to COVID pandemic*

Just 1% of Total Global Financial Assets (estimated at $382tn), could bridge the existing SDG financing gap. The Challenge is how to unlock this fund.

DEVELOPING COUNTRIES,
LDCs & SIDS

The funding gap is even more critical in developing countries, Least Developed Countries (LDCs) and Small Island Developing States (SIDS) where systemic bottlenecks prevent more capital from flowing.

These bottlenecks include:

1.Missing blended finance policy and practitioner frameworks from ‘the perspective and context of developing countries, LDCs, and SIDS

2.Limited knowledge and capacity to deploy innovative finance solutions, engage with the private sector and integrate natural solutions, particularly on how to scale blended finance in the context of social sectors

3.Lack implementation, partnerships, institutional structures of funds allocated to right national policies’ design and financing solutions for transition to a sustainable future.

4.Lack of investable projects and financial support to seed and scale early stage SDG-related ventures.

Blended finance has been defined as the strategic use of development finance (public and/or philanthropic funds) for the mobilisation of additional commercial finance towards sustainable development in developing countries. The Tri Hita Karana Roadmap and OECD DAC Blended Finance Principle seek to provide a universal framework to strengthen and scale blended finance ecosystem.

(Source: OECD Tri Hita Karana Roadmap on Blended Finance 5 Principle Guidance)

President’s Appreciation Letter to
2018 Tri Hita Karana Partners and Participants

“… Indonesian government and Tri Hita Karana Forum envisage a *Global Blended Finance and Innovation Institute for Better Business Better World in Bali to scale up capacity building, policy research and action labs for real solutions.” – President Joko Widodo, Republic of Indonesia

Note: (*) now referred to as the Global Blended Finance Alliance

The Global Blended Finance Alliance (BFA) is initiated as the follow-up to the launching of the Tri Hita Karana Roadmap on Blended Finance at the 2018 IMF-World Bank Annual Meeting in Bali, that is co-led by partners such as the OECD DAC, and the DFIs/MDBS, World Economic Forum and many governments participating. The THK Roadmap has underlined the importance to develop a global system that enables a greater mobilisation of private funds to scale the delivery of the 2030 SDGs Agenda. It is through engaging with a wide set of actors, and building a global community of support that the blended finance can achieve full potential. The Global BFA is not envisioned as a financing entity but an aligner and voice of development to leverage on the founding member countries, strengths of the multi stakeholder partners enabling system shift outcomes in Indonesia, the region, island states, and the development world.

VISION

To Align, Blend, Change the DNA of Enterprises, Finance and Governance landscape for Happiness Impact.

MISSION

To align intentions and drive innovative and collaborative financial and business solutions in scaling climate actions, including human wellness and nature-based solutions for Triple Happiness Impact for all people (SDGs) with harmonies of people, planet, and spirit (peace and partnerships).

The Global Blended Finance Alliance (or BFA, formerly Blended Finance and Innovation Institute) aligns global partners to support the incubation of innovative financing for inclusive business and the SDGs. It seeks to overcome barriers (including regulatory) to investing in high-impact sectors in emerging markets, create a hub of best practice for developing country infrastructure finance institutions, accelerate on-ground pipeline development (especially for natural solutions, clean energy and circular economy), and convene leaders around catalytic financial instruments to crowd in commercial investment at scale. The Global Blended Finance Alliance will create shared institutional learning across stakeholders, match-make capital to projects, catalyse leadership and forge new collaboration between public, private, civil society and academia to scale up innovation and investment for sustainable and inclusive development.

Scaling Up Blended Finance Solutions for Developing Countries, LDCs, SIDS

The Global BFA will help design, access and structure transition finance beginning in Indonesia, the region and beyond to accelerate the shift to a net-zero, nature-positive and more inclusive economy, creating a financing blueprint for the rest of the world.

The Global BFA will develop thought leadership on optimal financing solutions, provide policy support, build institutional capacity through training & education for government institutions and agencies, develop and scale best practice blended finance products, help access catalytic capital especially for pipeline development at lower transaction costs and support engagement with the private sector alongside international coordination and leadership.

Goal of mobilising US$100B blended investments for climate actions and the SDGs in Indonesia by 2027.

Support domestic financial ecosystems and market development

Inclusive local markets
Local currency investment
First mover transaction
Capacity building, public reform
Strengthening the role of national development banks

Design blended finance solutions to reach
the “last mile”

Respond to local needs and reach the most vulnerable and underserved LDCs in the decision- making table
SDG pipeline project
Investment Opportunity Areas
Digital solutions

Improve impact management and measurement,
and promote transparency

Impact and results measurement frameworks
Harmonized minimum reporting requirements

Bring blended finance to a large scale through systemic and transformational approaches

INFF
Prioritize a portfolio approach
Scale-up derisking facilities
Increase the ticket/deal size
Effective partnership of all
stakeholders

List of Potential Climate Actions and SDGs-linked projects and solutions being worked on…

(Indicative of projects but not exhaustive)

In collaboration and coordination with THK Partners and Indonesia’s financing agencies – SMI SDG Indonesia One, Indonesia Investment Authority (INA), Indonesia Environment Fund (BPDLH) et al.

Targeting an estimated $30 Bil worth of investment.

Blended Billion for Planetary Health

Energy Transition
(JETP/ETM)

Tropical Forest Power Collaboration
(Indonesia, Brazil, Congo Forest Power for Climate Action)

Blue Halo S with MPAs and Mangrove Restoration

Happy Digital Cities
(New Capital, Kura Kura Bali as G20 Prototype)

Toba Agriculture Prototype & Food and Land Use

Speed Up
Anti Poverty with Digitisation

$30 Bil ‘Health of
Nations’ Bio Fund

Natural Capital Communities Carbon Marketplace

SDG Indonesia One SDG Bond

$10 Bil International Finance Facility for Education (IFFEd)

Historical Urban Landscape
Borobudur and Sakenan

THK Center for Future Knowledge: VC, IEEE, Xprize, PILC, AIM

DYNAMIQ Fund
for Small and Mid- Size Renewables

Circular Economy & Plastic Action
(GPAP)

SMEs Planetary Health One Fund for Better World

Partnership as a Way to Happiness Impact

The Global Blended Finance Alliance will leverage and formalise the convening power of the Tri Hita Karana (THK) Forum and THK Partners to facilitate collaboration amongst key stakeholders at local and global level for climate actions and SDG-related initiatives as well as facilitate policy change in support of these initiatives.