JAKARTA (ANTARA) — Investment and partnerships between the public and private sectors are one of the keys to creating sustainable and resilient infrastructure, said Brodjonegoro, Lead Co-Chair of Indonesia T20 Bambang.
This public-private partnership plays a role in financing infrastructure development, he noted during the T20 special event: Sustainable Infrastructure Investment and Finance (SIIF) here on Tuesday.
T20 is a collaborative forum for think tanks and researchers from G20 member countries.
Group 20 or G20 is a multilateral cooperation group comprising 19 countries and the European Union (EU). The G20 summit will take place in Bali in November.
Sustainable infrastructure should be developed as it will become a catalyst for the realization of a recovery that can only be implemented with a coherent and inclusive multilateral approach and international cooperation.
Larger investments are required from low- and middle-low-income developing countries as their infrastructure problem is more complex, including water availability and sanitation, energy, electricity and transportation.
In addition, sustainable development is an elusive priority agenda due to limited fiscal capacity that requires creative and innovative financing, especially for poor and developing countries.
Public-private partnership (PPP) is the answer to expanding sustainable infrastructure development.
This PPP program offers not only advantages in terms of efficiency for the government, but also the knowledge and experience of the private sector within the project.
However, the government should provide precise incentives. These incentives are given to both the public and private sectors to encourage them to work together or invest in sustainable infrastructure development, Brodjonegoro said.
Sustainable investments should continue to grow to reduce and mitigate the environmental degradation and economic losses caused by climate change, he noted.
The principle of environmental, social, and corporate governance (ESG) should be implemented as it is at the core of sustainable investing, he noted.
ESG stands for various activities, such as supporting the green economy, promoting low-carbon activities and developing zero-emission infrastructure, he explained.
This sustained investment or funding will create resilient and adaptable infrastructure that will have a transformative impact on people’s quality of life, he stressed.
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