Draft Permen on Innovative Development Financing

The Government is in the process of finalizing a regulatory framework to accelerate the achievement of the Sustainable Development Goals (“ SDGs ”), through the drafting of Regulation of the President on SDGs (“ Rperpres on SDGs ”) and Draft Regulation of the Minister of National Development Planning (Perencanaan Pembangunan Nasional- “ PPN ”) or the National Development Planning Agency (“ Bappenas ”) on innovative development financing.

“The Government is committed to integrating the principles of sustainable development into all aspects of national planning. This is expected to promote a development transformation that is inclusive, equitable, and environmentally sustainable,” said Unan Pribadi, Director of  Harmonization of Laws and Regulations III at the Directorate General of Laws and Regulations (DJPP).

In addition to the regulatory framework, the Government is also preparing innovative financing instruments through the establishment of a trustee institution for the Innovative Development Fund (“ ID Fund ”). The establishment of the ID Fund constitutes a direct mandate under Regulation of the President No. 195 of 2024 on Bappenas. Through this mechanism, the Government seeks to address development financing challenges by not relying solely on the State Revenue and Expenditure Budget (Anggaran Pendapatan dan Belanja Negara- “ APBN ”), but also by optimizing other creative sources of funding.

“It is still in the process of harmonization and consolidation of concepts,” he added.