Innovative Financing Solutions for Sustainable Infrastructure Highlighted at 2025 Climate Capital Risk and Impact Conference
At the recent Climate Capital Risk and Impact Conference 2025 held in Mumbai, Rizki Pribadi Hasan, CEO of PT Indonesia Infrastructure Finance (IIF), articulated vital perspectives on innovative financing for sustainable infrastructure. His remarks underscored the unique position of IIF as Indonesia's only financial institution dedicated to supporting private sector infrastructure projects. Currently, a significant 22% of IIF's portfolio is allocated to renewable energy projects, encompassing hydro, solar, biomass, and geothermal power generation.
IIF has emerged as a trailblazer in green financing in Indonesia, having made history in 2021 as the first non-bank institution to issue a global sustainable bond. In 2024, it further solidified its pioneering status by introducing the first-ever green perpetual notes listed on the stock exchange, thereby expanding green funding options in the country. Rizki highlighted the importance of specific financial instruments, such as the Cash Deficiency Support Facility, which stabilizes cash flow during the initial operational phases of projects, and the Credit Enhancement Facility, which can elevate bond ratings and reduce funding costs for clients.
These financing mechanisms are essential not only for achieving financial closure on infrastructure projects but also for significantly advancing Indonesia's national climate transition agenda. During the conference, Rizki, alongside other panelists, stressed the necessity of collaboration among development finance institutions, banking sectors, and capital markets. They advocated for blended finance approaches and the adoption of ESG standards to mobilize the trillions of dollars required for developing countries to meet net-zero targets.
IIF's engagement in this international forum reaffirms its commitment to serve as a key catalyst in promoting green transitions across Indonesia, emphasizing the critical role that public policy and innovation in financing can play in addressing climate challenges.