Bali – Indonesia is hosting the 10th World Water Forum (WWF) event from 20-25 May 2024. The public is optimistic that the Government will be successful in holding this prestigious event.
The increasing risk of water scarcity and availability makes the issue of water security very important. Therefore, this issue has become one of the priorities in the Sustainable Development Goals (SDGs).
“The magnitude of this challenge requires us to mobilize new funding sources and risk reduction approaches to create investor confidence in efforts to build resilience, especially in the field of water infrastructure, through the Global Water Fund,” said Coordinating Minister for Maritime Affairs and Investment (Menko Marves) Luhut B. Pandjaitan at the 10th High Level Panel (HLP) World Water Forum in Bali.
Coordinating Minister for Marves Luhut said, the Global Water Fund, which is blended finance, is a financial structuring approach that combines various forms of capital to support common goals, especially in complex investments that have the potential to build community resilience and achieve sustainable development goals.
This approach involves using public or philanthropic funds to attract private capital, especially for projects that may be considered too risky or not immediately profitable.
“This can be used to address funding gaps, reduce investment risks, and stimulate economic growth and innovation. Indonesia initiated the G20 Bali Global Blended Finance (GBFA) which will bridge the funding gap for climate issues and SDGs goals with a regional-led approach, and is dedicated to facilitating developing countries, least developed countries (LDCs), and work with South-South to improve the transition process,” added Coordinating Minister for Marves Luhut.
At the same event, Minister of Finance (Menkeu) Sri Mulyani Indrawati said the Ministry of Finance would continue to support the formation of the Global Water Fund because realizing water security and adequate sanitation requires collaboration between the government and the private sector.
“Later, we from the Ministry of Finance can help PUPR friends. Like our experience of making something like a pandemic fund, right? So that later from there we can see how funding is formed. “Moreover, at the world level, it can be done,” said Sri Mulyani.
The Minister of Finance added that efforts to establish a Global Water Fund are being undertaken by the Indonesian Government to be discussed with stakeholders from various countries and organizations.