Tuesday, 15 October 2019 | 05:33 WIB

Sri Mulyani Speaks of Green Bonds in London

Indonesia Minister of Finance Sri Mulyani (special)

JAKARTA, NETRALNEWS COM -- Indonesia Minister of Finance Sri Mulyani says that the green bonds issued by the government since 2018 were in great demand by international investors. However, the former World Bank Managing Director does not deny that the green bonds issued by Indonesia have not really been as expected.

"Although the interests of international investors are quite high, the green bonds issued by Indonesia since 2018 and continued in 2019 are not really green. Of the buyers' portfolios, 21 percent are bought by green investors and 79 percent are bought by regular investors," said Minister Sri Mulyani.

This was conveyed when she became a panelist in a seminar entitled 'Sustainable Finance and Development in Emerging Markets: Challenges and Opportunities' in London, England. On this occasion, Sri Mulyani said the government and private companies have committed to sustainable development through state budget and green finance mechanism.

Sri Mulyani said the preferences of buyers and associated projects, Indonesian green bonds have not really described as green bonds. Because of the buyers' portfolios, only 21 percent were bought by green investors, while the rest were still bought by conventional investors. "Therefore, private participation is associated with buyer preferences and reflected by prices having a strong signal," he said.

Meanwhile, the other panelists include H.E. Mamuka Bakhtadze (Prime Minister, Georgia), Sonja Gibbs (Managing Director, Global Policy Initiatives, Institute of International Finance), Jingdong Hua (Vice President & Treasurer, The World Bank), Mary L. Schapiro (Vice Chair of Global Public Policy, Bloomberg), Mrs. Zainab Shamsuna Ahmed (Former Minister of Finance, Nigeria) and finally Yerlan Syzdykov (Global Head of Emerging Markets, Amundi Asset Management). The moderator was Francine Lacqua from Bloomberg Television.

Issuance of Green Bond or Green Sukuk is one of Indonesia's commitments to SDGs related to climate change issues or related to environmental issues such as renewable energy, sustainable transportation, waste management, and green buildings. In 2019, Indonesia issued Green Sukuk worth US$ 750 million in addition to other types of sukuk amounting to US$ 1.25 billion.