Impact Policy Tracker Policy

SDG Indonesia One Blended Finance Platform



Launched in 2018 under a mandate from Indonesia’s Ministry of Finance, SDG Indonesia One (SIO) is a first-of-its-kind integrated blended finance platform designed to mobilise public and private capital for infrastructure and development projects contributing to the Sustainable Development Goals (SDGs). Managed by PT Sarana Multi Infrastruktur (PT SMI) - a non-bank financial institution fully owned by the Government of Indonesia - SIO brings together resources from a wide range of sources, including private investors, philanthropic organisations, donor agencies, bilateral and multilateral financial institutions, as well as banking and insurance actors.

SIO operates through four dedicated facilities tailored to donor and investor needs: a Development Facility to strengthen project preparation, a De-risking Facility to enhance project bankability, a Financing Facility offering flexible financial products, and an Equity Facility that supports greenfield investments.

As of 2022, the platform had mobilised US$3.03 billion in commitments toward its US$4 billion target, with contributions from Global Affairs Canada, Agence Française de Développement, Bloomberg Philanthropies, Standard Chartered, the European Investment Bank, WanaArtha Life, and other partners. Indonesia accounts for a significant share of blended finance activity in Southeast Asia - approximately 40% of total volume and 59% of total value in the region - underscoring SIO’s catalytic role in shaping the blended finance landscape.

Highlights

  • A blueprint for how governments can champion the use of blended finance for sustainable development: With Indonesia’s national infrastructure financing institution, PT SMI - fully owned by the Ministry of Finance - actively promoting the use of blended finance, the example of SDG Indonesia One demonstrates how governments can drive and champion innovative financial mechanisms to fund national development priorities. The platform reflects Indonesia’s long-term vision for leveraging blended finance, which is also embodied in its Tri Hita Karana (THK) Roadmap for Blended Finance. Launched under Indonesia’s leadership during the IMF-World Bank Meetings in 2018, the THK Roadmap serves as an international framework for mobilizing additional commercial capital toward the SDGs and as testament of Indonesia's government commitment to mobilise private capital for public good.

  • Demonstrated SDG Impact Across Indonesia: By 2022, SIO-supported projects were already delivering measurable SDG results across Indonesia. These include 550 new hospital beds (SDG 3); 4 schools and 31 classrooms serving 716 students (SDG 4); clean water access for 2,000 families (SDG 6); and studies for 13.48 MW of renewable energy with 1.5 MW/year in potential savings (SDG 7). SIO also upgraded 15,400 m² of traditional markets, creating 172 kiosks (SDG 8/9); supported 365,000 tons/year of waste management capacity (SDG 12); and enabled projects with the potential to reduce 5,867 tCO₂e/year (SDG 13).

Government’s Role:
Market Participant


Country:
Indonesia

Policy Type:
Funding Programmes

Year: 2018

Responsible Institution:
PT Sarana Multi Infrastruktur (Indonesia’s national infrastructure finance institution) under the Ministry of Finance

Additional information:
Blended Finance Deep Dive (PT Sarana Multi Infrastruktur) - SDG Indonesia One Blended Finance Platform
Indonesia - A hub for blended finance in the Asia-Pacific

Funding Programmes

What are funding programmes?

Funding programmes - which provide financial resources in the form of grants, loans, equity, and guarantees - can be used by governments and public institutions to address financing gaps and attract private sector participation, often through dedicated funding windows, government-backed funds, and public-private partnerships, towards businesses that place social and/or environmental impact at their core. By doing so, they help grow a pipeline of mission-oriented organisations capable of addressing systemic challenges while contributing to inclusive and sustainable economic development.

This support can take various forms: capital provided directly to enterprises to meet early-stage or growth financing needs; investments channelled through intermediary funds to reach a broader range of businesses; or blended finance models where public or philanthropic actors absorb higher risks to make investments viable for private investors. The design of these mechanisms is often catalytic, helping to build investor confidence, promote financial inclusion, and strengthen the resilience of social enterprises across diverse sectors and geographies.