[🇧🇩] Searching for ways to build sustainable economic relation with Indonesia

[Saif]

Date of Event: Mar 1, 2025

Source : https://www.newagebd.net/post/economy/259031/bangladesh-indonesia-explore-new-frontiers-in-sustainable-finance

Bangladesh, Indonesia explore new frontiers in sustainable finance
Bangladesh Sangbad Sangstha . Dhaka 28 February, 2025, 23:27

In demonstration of their shared commitment to advancing sustainable economic growth, Bangladesh and Indonesia engaged in a high-level exchange on sustainable finance.

A delegation of senior representatives from Bangladesh’s Economic Relations Division, Ministry of Finance, led by cabinet secretary Sheikh Abdur Rashid and ERD additional secretary AKM Sohel, and supported by the United Nations Development Programme and Impact Investment Exchange (IIX), visited Indonesian capital Jakarta from February 24 to 27, said a press release.

ERD joint secretaries Razibul Islam, Ashfaqul Islam Mukut and other senior officials were also present.

The visit aimed to gain 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 mobilise capital for national 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.

AKM Sohel said that Bangladesh was committed to building a sustainable and resilient economy and this collaboration with Indonesia was a vital step toward unlocking innovative financial solutions through capital markets.

‘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,’ he added.

Indonesia has been recognized for its leadership in sustainable finance, having introduced award-winning financial instruments such as the green Sukuk and sustainability bonds.

Both countries have demonstrated commitment to ensuring that investments are directed toward the communities most affected by these issues, particularly women and underserved populations, with Bangladesh looking to issue green bond and their inaugural orange bond, recognising that sustainability must encompass more than just environmental concerns.

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 with key organisations leading Indonesia’s sustainable finance initiatives across public, private and philanthropic sectors.

Durreen Shahnaz, CEO and founder of IIX, said that 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 mobilising capital for impact at scale. IIX is proud to support this regional knowledge exchange and looks forward to seeing these insights transform into actionable outcomes that benefit women and underserved communities,’ he added.

The delegation’s visit 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.

Both countries recognize that diversified, well-structured financial solutions are essential for advancing national economic priorities and achieving the Sustainable Development Goals. Such financial solutions are also crucial for funding climate change adaptation and mitigation actions as enshrined in Bangladesh’s National Adaptation Plan and Nationally Determined Contributions.​

 

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Indonesia seeks enhanced trade, investment ties with Bangladesh

Dhaka, Jakarta had not forged a closer relationship despite their shared religious and cultural backgrounds, says CA

www.thedailystar.net

Indonesia seeks enhanced trade, investment ties with Bangladesh

Photo: PID

Indonesian Vice Foreign Minister Arrmanatha Christiawan Nasir has called for enhanced trade, investment, and cultural ties between Bangladesh and Indonesia, Southeast Asia's largest nation, saying Jakarta is eager to deepen its engagement with Dhaka.

Nasir made the remarks during a meeting with Chief Adviser Prof Muhammad Yunus at the latter's office in Tejgaon, Dhaka, today.

Their discussions focused on areas of mutual interest, with particular emphasis on strengthening bilateral relations between the two Muslim-majority countries.

The chief adviser, who visited Indonesia several times before assuming office, expressed regret that Dhaka and Jakarta had not forged a closer relationship despite their shared religious, historical, and cultural backgrounds.

"We must become the closest of friends," Professor Yunus said, emphasising the importance of more people-to-people exchanges, including cultural and educational tours.

"We are ready to go to great lengths to build a stronger relationship with Indonesia," he added.

Vice Minister Nasir echoed this sentiment, highlighting Indonesia's provision of scholarships for Bangladeshi students and plans to invite Bangladeshi foreign ministry officials to attend training at its diplomatic institutions.

Prof Yunus also proposed visa-free travel for Bangladeshis to top Indonesian tourist destinations such as Bali, which would foster greater interaction between the two nations' citizens.

Nasir stated that Indonesia would support Bangladesh's efforts to become a sectoral dialogue partner of ASEAN, Southeast Asia's regional bloc.

Prof Yunus welcomed the support, saying it would pave the way for Bangladesh's eventual full membership in ASEAN. He requested continued Indonesian backing in this endeavour.

The Indonesian vice minister described Bangladesh as a key player in ensuring peace and stability in the Indo-Pacific region.

Nasir, who is leading a trade and investment delegation to Dhaka, said Indonesia is the fourth-largest import destination for Bangladesh.

He said Indonesian businesspeople were keen to invest in the country's economic zones and its booming manufacturing and energy sectors.

Prof Yunus also sought Jakarta's support in resolving the Rohingya crisis, expressing hope that Indonesia would take an active role in the upcoming UN conference on the issue in New York this September.

"We need a peaceful resolution to the Rohingya crisis," he said.

Nasir assured that Indonesia shares Bangladesh's concerns and remains committed to assisting in resolving the humanitarian issue.​