PGII Ready to Raise Funds for Poor Countries

G7 Partnership for Global Infrastructure and Investment (VOA)

Developed countries are ready to allocate funds for poor and developing countries for infrastructure development. These countries, which are members of the Partnership for Global Infrastructure and Investment (PGII), will allocate funds in the form of grants and loans of US$ 600 billion or Rp 9,351 trillion.

Poor and developing countries can use the funds for up to five years.

“Infrastructure development needs to empower local people and the economy to have a high sense of ownership. So that developing countries are more resilient in facing global challenges in the future,” said the President of the Republic of Indonesia Joko Widodo (Jokowi) the Indonesian G20 Presidency on Tuesday (11/15/2019) 2022).

The allocation of these funds is to support the financing of the new PGII project. These projects include the Just Energy Transition Partnership (JETP) of US$ 20 billion for Indonesia and the Indonesia Millennium Challenge Corporation (MCC) Compact of US$ 698 million.

Furthermore, Trilateral Support for Digital Infrastructure through Australia and Japan’s partnership for digital projects, securing critical mineral supply chains in Brazil, developing solar energy in Honduras, and investing in health infrastructure for India.

Jokowi emphasized that PGII in supporting infrastructure development in developing countries must be based on a collaborative paradigm. Involve more stakeholders including the private sector and generate sustainable development and support the energy transition.

The ability to develop countries and poor countries to build infrastructure during a global multidimensional crisis is a challenge for fiscal policy.

At the head of state meeting in Bali, Indonesia was quite intense in bringing up some issues to support economic recovery for developing countries and poor countries.

Debt restructuring and infrastructure development for developing countries and poor countries are Indonesia’s focus in the 2022 G20 Presidency.

“PGII is not only investing in infrastructure development, but we are also investing in the local capacity of our partners,” said European Commission President Ursula Gertrud von der Leyen, who attended the PGII meeting on the sidelines of the G20 summit (Summit) in Bali.

For information, PGII is a collaborative effort of the G7 countries namely the United States, Britain, Italy, Japan, Germany, Canada, and France, which was formed in June 2021 during the 47th G7 Summit in England.