The Indonesian G20 Presidency has urged superpower countries to contribute to efforts to support sustainable infrastructure development, especially in the post-COVID-19 pandemic period.
The development of sustainable infrastructure is important for handling climate change, which superpower countries have also contributed to, Finance Minister Sri Mulyani Indrawati noted during the “T20 Special Event: Sustainable Infrastructure Investment and Financing” in Washington D.C., the US, on Tuesday.
T20 is a cooperation forum for think tanks and researchers from G20 member countries.
Group 20, or G20, is a multilateral cooperation group that comprises 19 countries and the European Union (EU). The G20 Summit will be held in Bali in November this year.
While superpower countries can still operate and enjoy their riches, the issue of climate change cannot be handled alone, she stressed.
Sustainable infrastructure development for handling climate change necessitates a large amount of funds and medium- to long-term commitment, the minister noted.
In view of this, the Indonesian G20 Presidency is encouraging member countries to continue to cooperate and collaborate for sustainable infrastructure development.
The Indonesian G20 Presidency agrees that the sustainable finance mechanism necessitates the contribution of all countries, including through Multilateral Development Banks (MDBs), to reduce risk and mobilize more funds.
Therefore, it is encouraging the optimization of development funding support, especially by improving MDBs' capacity through the Capital Adequacy Framework (CAF) review.
The CAF review aims to optimize MDBs' balance sheets so they have more room for member countries' development funding.
Meanwhile, several initiatives within the context of sustainable development have been undertaken to cover the infrastructure gap and support the National Economic Recovery Program, Indrawati informed.
These initiatives cover renewable energy, climate change, digital infrastructure, and also urban development.
The Finance Ministry has formulated policies and implemented these initiatives along with related ministries and stakeholders, she said.
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