The UNDP, the Ministry of Finance of Indonesia and Universitas Negeri Makassar collaborated to host over 150 local community members and university students for a discussion on Indonesia’s climate action strategies.
The discussion, which was followed by a visit to a coastal project funded by a Sukuk facility, was titled ‘Climate Talks and Site Visit: Action for Climate and Sustainability’, and also examined the successful leverage of green Sukuk in financing impactful green projects in the country.
Participants were taken on a tour of the green Sukuk-financed project in Takalar Regency, just south of Makassar, where a two-kilometer strip of Galesong Beach has been transformed by constructing coastal defence structures in Aeng Batu-Batu Village.
“Prior to its construction, houses along the beach were in constant danger of being damaged by the waves. Now, a series of groins, breakwaters and seawalls protect the coast against tides, currents and waves, effectively preventing the loss of almost 100 meters of land due to abrasion,” read a statement.
The impact of the project’s completion has been substantial — it has spurred the local economy, local fishermen can now dock their boats safely and locals benefit from a growing tourism industry and new employment opportunities in the area.
“The project, completed by the Ministry of Public Works and Housing, is one of many government projects focused particularly on climate change adaptation, which are of significant urgency and relevance due to the country’s vulnerability to the impacts of climate change,” said the UNDP.
Dwi Irianti Hadiningdyah, the director of Shariah financing at the Ministry of Finance, noted how the government has taken innovative approaches to bridge the financing gap through green Sukuk, adding that it has allowed for sustainable and impactful investments.
In 2021, the government released the Republic of Indonesia SDGs Government Securities Framework with the support of UNDP Indonesia, under which green Sukuk are highlighted as one of the thematic debt instruments focused on financing green projects.