{"id":48425,"date":"2024-08-16T10:32:48","date_gmt":"2024-08-16T01:32:48","guid":{"rendered":"https:\/\/www.pp.u-tokyo.ac.jp\/?p=48425"},"modified":"2024-08-16T10:32:48","modified_gmt":"2024-08-16T01:32:48","slug":"summary-indonesia-japan-policy-research-forum-for-asia","status":"publish","type":"post","link":"https:\/\/graspp.neopa.jp\/en\/news\/summary-indonesia-japan-policy-research-forum-for-asia\/","title":{"rendered":"Indonesia-Japan Policy Research Forum for Asia Workshop \u201cSustainable Finance for Green and Blue Development in Asia\u201d"},"content":{"rendered":"

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Since 2014, GraSPP has been organizing workshops and seminars to enhance intellectual exchange between Japan and Indonesia and among Asian countries. This article summarizes the discussions at the most recent workshop.<\/span><\/span><\/p>\n

On March 5, 2024, GraSPP and the <\/span>Institute for Economic and Social Research, Faculty of Economics and Business of the University of Indonesia (LPEM FEB UI)<\/a><\/span> hosted the event jointly with the <\/span>Asian Development Bank Institute (ADBI)<\/a><\/span> as a policy dialogue under the Indonesia-Japan Policy Research Forum for Asia with the financial support of the<\/span> <\/span>Toshiba International Foundation (TIFO)<\/a><\/span>. The workshop titled <\/span>\u201c<\/span>Sustainable Finance for Green and Blue Development in Asia\u201d <\/span>attracted more than 80 academic, government, and private-sector participants from Indonesia, Japan, and the Philippines.<\/span><\/span><\/p>\n

Background<\/span><\/span><\/h5>\n

Indonesia has emphasized the need to prioritize low-carbon green and blue development and prepared action plans for financing to meet such priorities since its G20 Presidency in 2022. The rationale for such emphasis is the growing importance of sustainability considerations for countries rich in natural resources on the ground and the ocean. The soil and sea should be preserved to support economic development and improve people\u2019s well-being inclusively while addressing climate change risks. Climate change risks originate from human activities on the ground and the subsequent degradation of the ocean ecosystem. Green and blue development requires efficient and effective allocation of financial resources, considering many countries with deteriorated <\/span>fiscal <\/span>positions and heightened debt burdens in the aftermath of the <\/span>COVID-19 <\/span>pandemic.<\/span><\/span><\/p>\n

More people must be well aware of green and blue development imperatives as serious stakeholders. Policymakers in Asia must coordinate and join efforts toward common goals by taking effective actions. An example is marine debris, which threatens the ocean ecosystem. Policymakers should raise people\u2019s awareness, promote stakeholder engagement in addressing such a challenge, and mobilize financial resources to achieve the shared goal of green and blue development in Asia.<\/span><\/p>\n

The primary target audience includes policymakers, practitioners, and academics from Indonesia, Japan, and other Asian countries. The outcome of the workshop discussion will be shared with relevant organizations in Indonesia, Japan, and other Asian countries with an insight into partnership opportunities to enhance green and blue development in Asia through responsible and sustainable financing. This workshop is expected to help promote sharing of knowledge and experiences between stakeholders in Asia.<\/span><\/span><\/p>\n

Opening session<\/span><\/h5>\n

Dean Tenguh Dartanto<\/b> of the Faculty of Economics and Business of the University of Indonesia <\/span>(FEB UI) <\/span>welcomed participants and celebrated the <\/span>F<\/span>orum<\/span>\u2019<\/span>s role in addressing critical issues like climate change and environmental degradation through sustainable finance. Emphasizing Indonesia<\/span>\u2019<\/span>s transition toward a green and blue economy, he highlighted the nation<\/span>\u2019<\/span>s initiatives, including the launch of the blue economy and sustainable agricultural and energy projects. Stressing the importance of integrating environmental considerations into financial decision-making, Dean Tenguh called for collaboration among governments, businesses, and financial institutions to unlock capital for environmentally and socially beneficial projects.<\/span><\/p>\n

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Dean Tetsushi Sonobe<\/b> of the <\/span>ADBI <\/span>delivered his <\/span>welcome<\/span> remarks, highlighting the shift of the A<\/span>sian Development Bank (A<\/span>DB<\/span>)<\/span> and ADBI toward climate financing. Highlighting several projects, including collaboration with universities<\/span> and think tanks<\/span>, Dean Sonobe emphasized green development<\/span>\u2019<\/span>s multifaceted nature, acknowledging the importance of political and institutional contexts. He then expressed his gratitude and encouraged fruitful discussions <\/span>among participants <\/span>to <\/span>find<\/span> innovative <\/span>approaches to<\/span> <\/span>Asia\u2019s <\/span>green and blue sectors and foster inclusive economic growth.<\/span><\/span><\/p>\n

\"\"<\/p>\n

S<\/span>ession 1<\/span>: Sustainable finance agenda<\/span>\u00a0in Asia<\/span><\/span><\/h5>\n

The sustainable finance agenda in Asia encompasses a multifaceted approach aimed at aligning financial practices with long-term sustainability and positive societal and environmental outcomes. This session seeks to find common ground in understanding the agenda.<\/span><\/i><\/span><\/b><\/p>\n

Session 1 <\/span>provided <\/span>an overview and <\/span>helped find <\/span>common ground in understanding the sustainable finance agenda in Asia. Prof<\/span>.<\/span> Toshiro Nishizawa<\/b> of the <\/span>GraSPP <\/span>of <\/span>T<\/span>he University of Tokyo highlight<\/span>ed<\/span> the shift from public to private funding in emerging countries and the challenges of fiscal constraints. Prof<\/span>.<\/span> Nishizawa<\/span> presented<\/span> <\/span>two <\/span>sustainab<\/span>i<\/span>l<\/span>ity<\/span> <\/span>concepts\u2014environmental and societal as one and financial as the other<\/span> <\/span>and <\/span>emphasized the need for efficient resource allocation to combat climate change<\/span>. He<\/span> hoped this Forum could discuss<\/span> the potential<\/span> <\/span>and pitfalls of<\/span> financial instruments<\/span> such as<\/span> green and blue bonds <\/span>in<\/span> achiev<\/span>ing<\/span> sustainable development.<\/span><\/span><\/p>\n

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Ms.<\/span> Masyita Crystallin<\/b>, Senior Advisor for the Minist<\/span>er<\/span> of Finance <\/span>of the Republic of <\/span>Indonesia<\/span>,<\/span> highlighted the <\/span>c<\/span>hallenges in climate finance<\/span>,<\/span> includ<\/span>ing<\/span> gaps in private investment and inefficient disbursement. She <\/span>illustrated <\/span>several trends in the market, <\/span>such as g<\/span>reen bonds <\/span>with insufficient <\/span>incentives and skewed <\/span>financing <\/span>toward mitigation over adaptation. <\/span>Furthermore, she pointed out that<\/span> sustainable financing <\/span>dominated by market borrowing <\/span>ha<\/span>d<\/span> made climate f<\/span>inancing<\/span> akin to typical<\/span> financing, and f<\/span>ragment<\/span>ed<\/span> abatement costs complicat<\/span>ed<\/span> carbon pricing. <\/span>Ms.<\/span> Crystallin emphasized the necessity of adopting the energy transition concept in the green taxonomy to attract investors in climate financing. <\/b><\/span><\/p>\n

Ms.<\/span> Mami Negishi<\/b>, Managing Director of the Sustainab<\/span>i<\/span>lity Solutions Department at Daiwa <\/span>S<\/span>ecurities<\/span>,<\/span> highlighted Japan<\/span>\u2019<\/span>s evolving sustainable finance trends, showcasing the exponential growth in ESG bond issuance, focusing on transition and sustainability-linked bonds since 2021. She also pointed out that Daiwa Securities was crucial in promoting sustainability finance through bond and equity products. Her presentation emphasized the importance of <\/span>market-based <\/span>funding in achieving Japan<\/span>\u2019<\/span>s green transformation goals, including the government<\/span>\u2019<\/span>s plan to issue significant green transition bonds align<\/span>ed<\/span> with international standards and climate transition finance guidelines.<\/span><\/span><\/p>\n

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Keynote addresses<\/span><\/h5>\n

H.E. Dr. <\/span>Sri Mulyani<\/span><\/b>, <\/span>Minister of Finance of <\/span>the Republic of <\/span>Indonesia<\/span>, h<\/span>ighlighted the triple crisis of climate change, biodiversity loss, and pollution, causing massive financial losses globally. Emphasizing the urgent need for a green economic transition, she noted Indonesia<\/span>\u2019<\/span>s leadership <\/span>role <\/span>in embracing th<\/span>ese<\/span> challenge<\/span>s<\/span>, highlighting several examples of funds and projects. She emphasized the underinvestment in the blue economy<\/span> and <\/span>the need for expertise across fields. <\/span>Minister Sri Mulyani<\/span> called for education, awareness<\/span> building<\/span>, and private-sector involvement. She underscored the essential role of sustainable finance in developing green and blue economies<\/span> and<\/span> urged collaboration among governments, financial institutions, and civil society to seize emerging opportunities.<\/b><\/span><\/p>\n

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Following the lunch break, Dr. <\/span>Febrio Kacaribu<\/span><\/b>, <\/b><\/span>Head of Fiscal Policy <\/span>Agency<\/span>, Ministry of Finance<\/span> of the<\/span> Republic of Indonesia<\/span>,<\/span> highlighted Indonesia\u2019s commitment to tackle climate change <\/span>challenges<\/span>, focusing on three sector<\/span>s: f<\/span>orestry, <\/span>e<\/span>nergy, and <\/span>t<\/span>ransportation. He mentioned that in the forestry sector, Indonesia ha<\/span>d<\/span> set up a market for carbon trading and <\/span>had been <\/span>working with other countries to find solutions for climate issue<\/span>s<\/span>. <\/span>Dr. Kacaribu added that the t<\/span>ransition from non<\/span>–<\/span>renewable to renewable <\/span>energy was<\/span> more expensive, and Indonesia need<\/span>ed<\/span> a mechanism that g<\/span>ave<\/span> incentives to fund th<\/span>ese<\/span> project<\/span>s<\/span>. <\/span>He illustrated the introduction of <\/span>incentives <\/span>for<\/span> purchasing electric vehicle<\/span>s as an example in the transport sector and<\/span> emphasized Indonesia<\/span>\u2019<\/span>s need to <\/span>introduce <\/span>financial instruments <\/span>to promote s<\/span>ustainable development.<\/span><\/p>\n

\"\"<\/p>\n

S<\/span>ession 2<\/span>: The <\/span>d<\/span>evelopment of a <\/span>g<\/span>reen and <\/span>b<\/span>lue <\/span>e<\/span>conomy<\/span><\/span><\/h5>\n

Developing a green and blue economy in Asia is critical for harnessing natural resources sustainability while promoting economic growth and people<\/span><\/i>\u2019<\/span><\/i>s well-being for present and future generations. Several aspects must be considered, such as policy coordination, regulatory framework, technological innovation, stakeholder engagement, and collaboration. This session seeks to give the audience an overview of Asia<\/span><\/i>\u2019<\/span><\/i>s opportunities, challenges, and pathways toward a resilient, sustainable, inclusive green and blue economy.<\/span><\/i><\/span><\/b><\/p>\n

Ms.<\/span><\/em> Lydia Napitupulu<\/b><\/span><\/em>,<\/span><\/em> <\/span>L<\/span>ecturer at the Department of Economics<\/span> <\/span>of <\/span>the <\/span>FEB UI<\/span>,<\/span> moderated the session.<\/span><\/em><\/p>\n

Ms. <\/span>Asri Hadiyanti Giastuti<\/span><\/b> <\/span>from <\/span><\/em>the <\/span><\/em>Ministry of National Development Planning<\/span> of the<\/span> Republic of Indonesia <\/span>highlighted the importance of sustainable finance for green and blue development in Asia. She emphasized the need to address the <\/span>\u201c<\/span>Triple Planetary Crisis<\/span>\u201d<\/span> by transitioning to a green economy. She projected significant environmental challenges for Indonesia, including <\/span>rising <\/span>temperatures, reduced forest cover, and water crises. She advocated for strategies like forest-peatland restoration, sustainable energy<\/span> promotion<\/span>,<\/span> improved<\/span> waste management, and <\/span>enhanced <\/span>climate resilience to support this transition. She also underscored the potential of <\/span>a<\/span> <\/span>b<\/span>lue <\/span>e<\/span>conomy for sustainable marine development and the crucial role of green technology and stakeholder collaboration in achieving sustainable development goals.<\/span><\/span><\/p>\n

\"\"<\/p>\n

Dr.<\/span> Muhammad Hanri<\/b> <\/span>from the <\/span>LPEM FEB UI<\/span> <\/span>pointed out <\/span>that Indonesia<\/span>\u2019<\/span>s inequality landscape, particularly<\/span> <\/span>economic disparity, <\/span>unfavorable <\/span>labor market trends, and <\/span>limited <\/span>infrastructure access, <\/span>was<\/span> significantly <\/span>exacerbated <\/span>by regional imbalances, especially between Java and non-Java <\/span>regions<\/span>. He emphasized the role of <\/span>the <\/span>Marine Protected Areas (MPAs) in addressing these economic and non-economic inequalities. <\/span>Dr. <\/span>Hanri recommend<\/span>ed<\/span> enhancing Indonesia<\/span>\u2019<\/span>s MPA management through collaborative and incentivized approaches. He suggest<\/span>ed<\/span> co-management involving communities and private sector<\/span> actor<\/span>s, vital monitoring, and institutional improvements. Additionally, he emphasize<\/span>d<\/span> the need for research to assess MPAs<\/span>\u2019<\/span> impact<\/span>s<\/span> on coastal inequalities and well-being<\/span>.<\/span><\/span><\/p>\n

D<\/span>r<\/span>.<\/span> Michael C. Huang<\/b> <\/span>from the Open Policy Research Institute <\/span>of Sasakawa Peace Foundation in <\/span>Japan<\/span> emphasized the increasing importance of the <\/span>b<\/span>lue <\/span>e<\/span>conomy, <\/span>b<\/span>lue <\/span>f<\/span>inance, and <\/span>b<\/span>lue <\/span>i<\/span>mpact <\/span>f<\/span>inance. He highlighted the need for a comprehensive approach to ocean-related issues, integrating natural and social sciences and humanities. <\/span>Dr. <\/span>Huang also underscored the significance of ocean transformation and sustainable practices across various sectors, such as food production, clean energy<\/span> generation<\/span>, pollution <\/span>prevention<\/span>, and eco-tourism<\/span> promotion<\/span>. The role of blue carbon, especially in the context of kelp, was also discussed, along with methodologies for its economic assessment and impact. <\/span>Dr. <\/span>Huang pointed out the crucial role of blue finance in supporting environmentally beneficial projects, emphasizing the potential of <\/span>b<\/span>lue <\/span>i<\/span>mpact <\/span>f<\/span>inance in achieving sustainable development for the ocean economy. The presentation concluded with recommendations for fostering a blue economy through evidence-based and community-based impact assessments, as well as the commitment of financial institutions to support ocean equity.<\/span><\/p>\n

\"\"<\/p>\n

S<\/span>ession<\/span> 3: Country <\/span>e<\/span>xperience in <\/span>g<\/span>reen and <\/span>b<\/span>lue <\/span>d<\/span>evelopment <\/span>a<\/span>genda<\/span><\/h5>\n

This session promotes sharing knowledge and experiences on green and blue development among Asian practitioners. It seeks to gain insight into challenges and partnership opportunities.<\/span><\/i><\/span><\/b><\/p>\n

Dr.<\/span> Riznaldi Akbar<\/b><\/span>, <\/span>Senior Capacity Building and Training Economist<\/span> <\/span>of<\/span> <\/span>the <\/span>ADBI, <\/span>moderated the session.<\/span><\/p>\n

\"\"<\/p>\n

Summary and wrap-up<\/span><\/h5>\n

Mr. <\/span>Taishin Noble<\/span><\/b>, a master\u2019s student from the<\/span> GraSPP<\/span>, and Ms. <\/span>Shofie Azzahrah<\/span><\/b>, <\/span>a master\u2019s student (<\/span>Economic Planning and Development Policy<\/span>)<\/span> from the Department of Economics of <\/span>FEB UI<\/span>, summarized the discussion for the whole day.<\/span><\/p>\n

\"\"<\/p>\n

Three representatives of the host organizations, Dr. <\/span>Riznaldi Akbar<\/span><\/b> from the ADBI,<\/span> Prof. <\/span>Toshiro Nishizawa<\/span><\/b> from the GraSPP, and Dr. <\/span>Jahen F. Rezki<\/span><\/b>, Vice Director of Research<\/span> of the<\/span> LPEM FEB UI<\/span>, shared their takeaways from the Forum discussions.<\/span><\/p>\n

\"\"<\/p>\n

Concluding remarks<\/h5>\n

Prof. Toshiro Nishizawa<\/strong> from the GraSPP made concluding remarks expressing appreciation to the participants and organizing committee members at the LPEM FE UI.<\/span><\/span><\/p>\n

About the Forum<\/span><\/h5>\n

The Indonesia-Japan Policy Research Forum for Asia is a collaboration between the Asian Development Bank Institute (ADBI), the Institute for Economic and Social Research, the Faculty of Economics and Business, the University of Indonesia (LPEM FEB UI), and the University of Tokyo\u2019s Graduate School of Public Policy (GraSPP) with the support of the Toshiba International Foundation (TIFO), a public interest incorporated foundation. The Forum\u2019s original format was a bilateral intellectual exchange between LPEM and its counterpart in Japan, which started in 2004 with the support of TIFO. <\/span>Since 2014, GraSPP has been<\/span> a counterpart to LPEM and ADBI joined in 2017 to make the Forum tripartite.<\/span><\/span><\/p>\n

February 23, 2023, in Jakarta | \u201cImpact Investing for a Transition towards Zero-Carbon Society in Asia.\u201d<\/span><\/span><\/p>\n

February 23-24, 2022, online | \u201cEnhancing MSMEs\u2019 Innovation and Competitiveness: The Role of Finance and Digital Technology\u201d<\/span><\/span><\/p>\n

February 18-19, 2021, online | \u201cInfrastructure, Technology, and Finance for Sustainable and Inclusive Development in Asia beyond the Pandemic\u201d<\/span><\/span><\/p>\n

November 7-8, 2019, in Jakarta | \u201cIndonesia-Japan Policy Research Forum for Asia: Financial and Technological Literacy for Sustainable and Inclusive Development in Asia\u201d<\/span><\/span><\/p>\n

November 7-8, 2018, in Jakarta | \u201cIndonesia-Japan Policy Research Forum: The Role of FinTech in Inclusive Growth in ASEAN Economies\u201d<\/span><\/span><\/p>\n

November 8-9, 2017, in Jakarta | \u201cInnovative Approaches to SME and Entrepreneurial Financing for Enhanced Competitiveness\u201d<\/span><\/span><\/p>\n

November 23, 2016, in Jakarta | \u201cEmerging Researchers Forum between Indonesia and Japan\u2014Partnership Opportunities for Enhancing Human Capital, Innovation and Competitiveness\u2014<\/span>Financial Inclusion and SME Development\u201d<\/span><\/span><\/p>\n

December 2, 2015,<\/span>\u00a0<\/span>in Jakarta | <\/span>\u201cEmerging Researchers Forum between Indonesia and Japan<\/span>\u2014<\/span>Partnership Opportunities for Enhancing Human Capital, Innovation, and Competitiveness\u201d<\/span><\/span><\/p>\n

November 24, 2014, in Jakarta | \u201cFDI for the Future:\u00a0Human Capital, Innovation, and Competitiveness\u201d<\/span><\/span><\/p>\n

February 11, 2014, in Jakarta\u00a0| \u201cHuman Capital Investment and Labor Productivity in Indonesia: Facts\u00a0and Challenges in a Global World\u201d<\/span><\/p>\n

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Since 2014, GraSPP has been organizing workshops and seminars to enhance intellectual exchange between Japan a […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[83],"coauthors":[325],"class_list":["post-48425","post","type-post","status-publish","format-standard","hentry","category-news","tag-summary"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/graspp.neopa.jp\/en\/wp-json\/wp\/v2\/posts\/48425","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/graspp.neopa.jp\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/graspp.neopa.jp\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/graspp.neopa.jp\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/graspp.neopa.jp\/en\/wp-json\/wp\/v2\/comments?post=48425"}],"version-history":[{"count":0,"href":"https:\/\/graspp.neopa.jp\/en\/wp-json\/wp\/v2\/posts\/48425\/revisions"}],"wp:attachment":[{"href":"https:\/\/graspp.neopa.jp\/en\/wp-json\/wp\/v2\/media?parent=48425"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/graspp.neopa.jp\/en\/wp-json\/wp\/v2\/categories?post=48425"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/graspp.neopa.jp\/en\/wp-json\/wp\/v2\/tags?post=48425"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/graspp.neopa.jp\/en\/wp-json\/wp\/v2\/coauthors?post=48425"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}

Ms<\/span>.<\/span> Maria <\/span>Ciefrel Desquitado<\/span> from the <\/span>Bangko Sentral ng Pilipinas<\/a> (BSP, central bank) explained that the Philippine government focused on sustainable development through green and blue economy strategies, including such a policy as the Green Jobs Act and Renewable Energy Plan to reduce carbon emissions and improve energy efficiency. She highlighted the challenges in attracting private investment for climate initiatives. She emphasized the need for systematic and sustainable financing approaches. Another example Ms. Desquitado illustrated was the Philippine Sustainable Finance Roadmap and Guiding Principles, which aimed at implementing regulations to manage environmental and social risks and promote sustainable finance. She concluded her presentation by illustrating the BSP\u2019s plan to continue to enhance its policy framework, focusing on transparency, capacity building, and developing sustainable financial instruments to support environmentally and socially sustainable economic activities.<\/span><\/span><\/p>\n