Tri Hita Karana (THK) is a philosophy and tradition that carries significant meaning in Bali, where the concept of balance can be seen in the island's daily life of ceremonies and traditions. Translated, Tri Hita Karana means three reasons for prosperity and well-being: 1) harmony among people, 2) harmony with nature/the environment and 3) harmony with god.

These values work together to support the objectives of Blended Finance, which is the strategic use of development funding to mobilize private capital flows to emerging and frontier markets. This, in turn, creates positive results for both investors and communities.

Sustainable Development Goals

The Organization for Economic Cooperation and Development (OECD) believe this is emerging as an important tool to help mobilise private financing towards the United Nations' Sustainable Development Goals (SDGs) and to support development outcomes.

How this can be implemented was the subject of discussion at the recent 3-day Tri Hata Karana Forum's Blended Finance and Innovation for a Better Business, Better World. The forum, endorsed by President Jokowi, was held in cooperation with the Coordinating Ministry of Maritime Affairs, the Coordinating Ministry for Economic Affairs and the Ministry of Finance and one of the many meetings that took place at the recent IMF-World Bank Meetings in Nusa Dua.

As the world's fourth most populous nation with one of the fastest growing and youngest markets, Indonesia's leadership in achieving sustainable development cannot be understated.

Green Bonds

Gapura Bali reported earlier in 2018 that Indonesia was the first country in Asia to publish the concept of state Green Bonds, to the tune of USD 1.25 billion. Indonesia also became the world's first home to sustainable land use bonds at USD 95 million, and has implemented the Roadmap for Sustainable Finance.

The recent THK Forum was the largest conference dedicated to Blended Finance and innovation in the world. Chair of the Global Blended Finance Taskforce, Jeremy Oppenheim, said the THK Forum strengthened Indonesia's position as a leader for SDGs. "Indonesia has inclusive, quality growth - based on low-carbon infrastructure, sustainable land use, eco-tourism and blended finance - to be a key point in its economic strategy, this will inspire other countries around the world to raise their standards," he said.

Members of the Government Task Force included the Financial Services Authority (OJK), Bank Indonesia (BI), the Investment Coordinating Board (BKPM), the Ministry of Foreign Affairs, the Ministry of Development and National Planning, the Ministry of Communication and Information, Sarana Multi Infrastruktur (SMI), and the Committee for the Acceleration of Infrastructure Provision Priority (KPPIP).

At the meeting, the Minister of Maritime Affairs, Luhut B Panjaitan confirmed the Indonesian government's committment to assist with the provision of incentives in the form of regulations to encourage the implementation of Blended Finance as an alternative to infrastructure financing.

According to local news wires, Luhut said, the "THK Forum can mobilize investments of up to 10 billion dollars for projects related to SDGs, from private capital to sectors that are a priority in Indonesia, including greening infrastructure, sustainable land use, marine, ecotourism, health, women and innovation."

Sources: Bali Post, SWA, Organisation for Economic Cooperation and Development (OECD), Mitra Adiperkersa, OJK, Kompas, Gapura Bali,

Similar to this:

Hundreds of millions of US dollars for tourism at the Indonesia Investment Forum

Indonesia Investment Forum in Bali focuses on Infrastructure Financing

Governor supports plans for new airport in Buleleng