Bangladesh and Indonesia engaged in a high-level exchange of views to explore new frontiers of sustainable financing as part of their shared commitment to advancing sustainable economic growth, A delegation of senior representatives from Economic Relations Division (ERD) of the Ministry of Finance, led by Cabinet Secretary Shaikh Abdur Rashid and Additional Secretary of ERD Razibul Islam visited Indonesian capital Jakarta from 24 to 27 February. The visit was supported by United Nations Development Programme (UNDP) and Impact Investment Exchange (IIX) and the delegation further included AKM Sohel, Additional Secretary of ERD Ashfaqul Islam Mukut, its Joint Secretary among other senior officials.
The visit aimed at gaining insights from Indonesia’s pioneering success in sustainable financing and thematic bonds, including Green and Sustainability mechanisms. The visit provided an opportunity for both nations to explore how financial instruments such as Green Bonds, Sukuk, Orange Bonds, and other thematic financing models can mobilize capital for sustainable development. The delegation engaged with Indonesia’s financial policymakers, bond issuers and climate-aligned projects to understand how sustainability-focused finance has been successfully scaled to drive economic growth while addressing environmental and social priorities.
By learning from Indonesia’s successful experience in green finance and social and sustainability aligned investments, we aim to develop financial mechanisms that will not only support our climate goals but also ensure inclusive economic growth for all Bangladeshis,” said. AKM Sohel, UN Wing Chief and ERD Additional Secretary. Indonesia has been recognized for its leadership in sustainable finance, having introduced award-winning financial instruments such as the Green Sukuk and sustainability bonds. IIX, a global leader in gender-lens investing coupled with climate action, is actively supporting both countries in structuring their Orange Bond frameworks, providing technical expertise, and facilitating access to impact-driven capital markets. At a welcome dinner hosted by IIX, the delegation engaged in discussion with key organizations leading Indonesia’s sustainable finance initiatives across public, private, and philanthropic sectors.
“Sustainable finance must be both inclusive and catalytic, ensuring that capital reaches those who need it most. The introduction of Orange Bonds in Bangladesh and Indonesia marks a bold step toward gender-responsive financial innovation, demonstrating how South-South partnerships can lead the charge in mobilizing capital for impact at scale.” The visit of the delegation reinforced Bangladesh’s commitment to expanding its sustainable finance market and integrating insights from Indonesia’s experience in mobilizing private capital for social and environmental impact. Such financial solutions are also crucial for funding climate change adaptation and mitigation actions as enshrined in Bangladesh’s National Adaptation Plan (NAP) and Nationally Determined Contributions (NDCs), the Bangladessh delegation said.