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reached USD .6 billion in 7 Figure .eleven. This falls short of the estimated USD 5 billion a year needed to fulfill the goal of sourcing at least 3 of power supply from renewables by 5 . Most renewables investment is channelled to geothermal energy and to a lesser extent biofuels – areas by which Indonesia is positioning itself as a world chief. Investment in wind and photo voltaic power has been sluggish . Overall investment within the power sector remains closely tilted in direction of fossil fuels. The authorities anticipated simply 5 of total vitality sector funding in 8 to focus on renewables with the bulk going to the electrical energy sector 33 in addition to oil gas and coal sixty two . Indonesia has wide infrastructure gaps that hamper financial and social improvement. The World Economic Forum’s Global Competitiveness Report cited inadequate infrastructure as a key downside in doing enterprise . At the identical time Indonesia’s rating with regard to infrastructure improved from in to 5 in 8 out of 38 countries. Years of underinvestment have led to an estimated infrastructure deficit of USD .5 trillion constraining progress limiting the tempo of poverty discount and contributing to environmental pressures. In February 8 Indonesia launched its first green bonds. The five- months “green sukuk” bonds i.e. they adjust to Islamic finance norms are value IDR 6.7 trillion USD .5 billion. Cicero a number one global supplier of green bond assessments rated the problem medium green – the second highest on a four-point scale. A 7 OJK regulation stipulates that a minimum of 7 of the proceeds from any green bond concern must be used to finance environment-friendly initiatives. The authorities intends to make use of all of the proceeds of the 8 concern to finance climate change mitigation and adaption actions but said that future issues may consider broader environmental projects together with on biodiversity and forest conservation. Indonesia has pledged to publish independently audited annual reports on the spending and impression of its bonds . The Financial Services Authority 5 has taken steps to enhance the financial sector’s engagement in sustainable growth. It developed a Roadmap for Sustainable Finance set up a national network of local weather finance specialists an inter-ministerial working group joined the Sustainable Banking Network and printed guidebooks on

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