SDGs Program Lacks of Financing

Without financial innovation, the target to improve people\'s welfare through the Sustainable Development Goals or SDGs in 2030 might be missed.

KOMPAS/KRISTI DWI UTAMI

Fishermen sort their catch into plastic containers to be auctioned at the Fish Auction Place (TPI) of the port of Tegal, Central Java, in late September (23/9/2019). According to data from the auction place, fish catches have continued to decline over the past five years. While 20,600 tons of fish were caught in 2015, only 6,500 tons were caught from January to August in 2019.

JAKARTA, KOMPAS — The United Nations Trade and Development Conference or UNCTAD estimates that the world  is in a short of funds of US$2.5 trillion a year to finance the programs needed to achieve the target of the Sustainable Development Goals (SDGs) in 2030.

To reach the target, all stakeholders should understand that significant mobilization of funding, investment and resources is needed.

In his speech at the opening of the SDGs Conference titled "Sustainable Marine to Improve Welfare and Reduce Inequality" in Jakarta on Tuesday, Vice President Jusuf Kalla unveiled the financial challenges to implement the SDGs programs.

The event was held by the National Development Planning Agency (Bappenas), the United Nations Development Program (UNDP) and the Global Environment Facility in Jakarta on 8-9 October 2019.

The SDGs are a collection of 17 global goals agreed by the UN member states and have to be achieved between 2016 and 2030. Although it is an international program, said Kalla, the SDGs are in line with the Indonesian government\'s goals to improve the welfare of the people.

KOMPAS/ALIF ICHWAN

A number of workers tend and arrange plants in the Pujon Kidul Tourism Village, Pujon district, Malang regency, East Java (26/9/2019). The Pujon Kidul Tourism Village is a pilot project that manages village-owned enterprises to improve community welfare.

The first goal is to reduce poverty, while other objectives are related to education, employment, industry, environment and partnerships to achieve goals.

One of the obstacles for middle to low income countries to achieve the SDGs target, including Indonesia, is the lack of funds. However, if all stakeholders can work together, Kalla believes the program can be implemented.

The High Level Dialogue at the United Nations Headquarters in New York on Thursday (26/9), even specifically raised the issue related to the funding shortage to achieve the SDGs target. Kalla was one of the speakers at the event and addressed the event with a speech titled  "Mobilization of Funds for Climate Action and Shortages of SDGs Financing".

Partnership

The chief of the National Development Planning Agency (Bappenas), Bambang PS Brodjonegoro, said that partnership, especially related to financing, was a necessity to achieve the SDGs target. The SDGs cannot be achieved if it relies only on the government budget.

Therefore, other sources of funding are needed, such as from the private sector and philanthropists. Bambang said to achieve the target, the establishment of a SDGs financing hub is needed. As a national coordinator, Bappenas has taken the initiative to become a funding hub that bridges funding from various sources. "The funding hub is a unit in Bappenas. It is not collecting money, but identifying potential sources of funds," he said.

KOMPAS/RADITYA HELABUMI

National Development Planning Minister/Head of the National Development Planning Agency (Bappenas) Bambang Brodjonegoro

Citing Kalla\'s speech at the UN Headquarters, the main functions of the hub are to introduce innovative financing, to build networks and to match strategies, to develop financing instruments and technology models, and to build capacity and knowledge sharing.

Bappenas will identify the source of funds then direct them to concrete actions. With this approach, there will no action that will be overfunded or underfunded.

At the opening of the conference, the executive secretary of the UN Economic and Social Commission for the Asia Pacific (UN-ESCAP) Armida Alisjahbana said the UN General Assembly Session in September reaffirmed the commitment of countries to achieve the SDGs target by 2030. On that occasion, a number of concrete actions were also agreed.

Catalyst

The conference also highlighted the poverty and inequality in in coastal communities. According to Bappenas’ deputy for economy, Bambang Prijambodo, the maritime sector\'s contribution to the growth of the country’s Gross Domestic Product is targeted to increase from 6.4 percent in 2015 to 12.5 percent in 2045. It indicates the average growth target of 0.2 percent per year.

KOMPAS/KORNELIS KEWA AMA

Dozens of fishing boats berth at the port of the Tenau fish auction place (TPI) in Kupang, East Nusa Tenggara.

"This figure is relatively low," he said. The acceleration of the marine economic growth needs the support of digital technology as a catalyst. This technology must support the economic inclusion of coastal communities, including fishermen.

According to the dean of the School of Fisheries and Marine Sciences, Bogor Agricultural University, Luky Adrianto, in general, the development of a sustainable marine economy supports the goal of SDGs number 14. "A sustainable marine ecosystem will increase the productivity and quality of life of coastal communities," said Luky.

The chairman of the Association of the Indonesian Fisheries Products Processing and Marketing Entrepreneurs, Budhi Wibowo, believes that policies need to encourage capture fisheries and aquaculture production. The policy includes simplifying licenses and focusing on improving infrastructure, such as electricity, irrigation, roads, ports and ice factories.

(LAS/JUD/LKT)