PT Sarana Multi Infrastruktur (Persero) (PT SMI) and Impact Investment Exchange (IIX) have formed a strategic partnership under the SDG Indonesia One platform to accelerate Indonesia’s progress toward the United Nations Sustainable Development Goals (SDGs) through innovative blended finance solutions focusing on mainstreaming the cross-cutting Orange Bonds (symbolizing the color of UN SDG 5: Gender Equality). Building on PT SMI’s longstanding commitment to integrating gender considerations into infrastructure financing and IIX’s global leadership in mobilizing capital through the Orange Movement™, the collaboration aims to channel more investments into projects that advance gender equality, expand social inclusion, and strengthen Indonesia’s sustainable development efforts.

Established in 2018 under the mandate from the Ministry of Finance of the Republic of Indonesia and managed by PT SMI, SDG Indonesia One is an integrated funding collaboration platform that combines public and private finance—a blended finance approach—to support infrastructure and development projects that contribute to the SDGs in Indonesia. This platform is aimed at increasing funding for high-impact projects, particularly in sectors that traditionally struggled to attract private investment in Indonesia.

Indonesia’s progress in achieving the SDGs has been significant, with the country rising from the 102nd position in the global SDGs index in 2019 to 75th in 2023. Despite this progress, a major challenge that the country faces is to democratize sustainable development across the nation, including remote areas that have limited access to education, health, and infrastructure.

Drawing from PT SMI’s strong focus on gender mainstreaming and IIX’s expertise in advancing the global Orange Movement™ and Orange Bonds, the collaboration will support SDG Indonesia One by : 1) Strengthening expertise and capacity-building initiatives focused on gender equality and social inclusion; 2) Promoting gender lens investment to direct more capital toward projects and initiatives that empower women and marginalized groups; and 3) Supporting the integration of Orange-aligned themes into all UN SDGs, driving a broader and more inclusive sustainability agenda.

Central to these efforts is PT SMI’s role as sustainability promoter, particularly in advancing gender inclusivity in infrastructure projects. Through the SDG Indonesia One platform, there is significant potential to align sustainable financing and social inclusion efforts with the Orange Bond Principles™, enabling support for a wide range of inclusive solutions under the themes of Green, Social, Sustainability, and Blue. Internally, PT SMI has also established the Gender Equality and Social Inclusion (GESI) Working Group to institutionalize its commitment to these issues. In parallel, PT SMI’s newly launched Sustainable Funding Framework integrates international financing benchmarks – including the Green Bond Principles, Social Bond Principles, and Sustainability Bond Guidelines from ICMA. This joint approach reinforces Indonesia’s leadership in sustainable finance by bridging local regulatory requirements with global best practices and standards, reinforcing Indonesia’s position as a leader in sustainable finance.

“Indonesia is a leader in the Global South for sustainable finance, and IIX is committed to supporting this growth through the SDG Indonesia One platform. By embedding gender equality and inclusion at the heart of sustainable development and finance—and leveraging the Orange Bond Principles as a global benchmark—we aim to meaningfully include women in decision-making, move capital to where it matters most, and create impact that advances the SDGs,” said Prof. Durreen Shahnaz, CEO and founder of IIX.

“In sectors like infrastructure, where gender inclusion is often overlooked, the Orange Bond Principles give us a practical yet robust framework that not only helps us integrate gender equality and just transition into our financing but can also adapt to PT SMI’s unique project financing mechanisms. This allows us to design inclusive and innovative solutions under the SDG Indonesia One platform, creating a more equitable future for Indonesia,” said Reynaldi Hermansjah, President Director of PT SMI.

With the partnership, the impact investment ecosystem in Indonesia continues to grow, uniting different stakeholders to transform traditional finance into a force for justice, resilience, and inclusive growth.

Growing the Orange Movement™ in Indonesia

The partnership strengthens the ongoing efforts to advance the Orange Movement™ in Indonesia, with IIX introducing the movement to the nation last year along with the Government and various private and development sector stakeholders. The Orange Movement™ is a pioneering global initiative dedicated to empowering 100 million women, girls, and gender minorities worldwide by 2030. By mobilizing US$10 billion, the movement aims to drive transformative change at the intersection of gender equality, climate action, economic prosperity, and peace.

IIX recently supported PT PNM to issue Indonesia’s first dedicated Orange Bond and Sukuk, highlighting the potential to develop equitable and inclusive financial markets in the country.