Alternative Instruments for Financing National Development: USAID Economic Growth Support Activity

with the support of the American people through the United States Agency for International Development (USAID). The report aims to provide inputs for the preparation of the National Medium-Term Development Plan 2025-2029. The report focuses on alternative financing instruments, including thematic alternative financing schemes and instruments, social and/or religious philanthropy fund, regional debt financing instrument, and the utilization of state and/or regional assets. The report also evaluates the potential of the State and/or Regional Asset (SIPA) value in Indonesia and assesses the country's readiness to implement SIPA in the National Medium-Term Development Plan 2025-2029. The report highlights the importance of alternative financing instruments in supporting the development of Indonesia's economy. It notes that SIPA has the potential to increase the country's development financing capacity and promote sustainable development. The report also emphasizes the need for a comprehensive evaluation of SIPA's potential and readiness to be implemented in the National Medium-Term Development Plan 2025-2029. The report identifies several key themes and instruments, including the Global Fund for Environmental Conservation and Management and/or Climate Change Mitigation and Adaptation, the Global Fund for Renewable Energy Transition, carbon trading instruments, carbon taxes, and carbon levies. It also discusses the social and/or religious philanthropy fund, the regional debt financing instrument, and the utilization of state and/or regional assets. The report provides a detailed analysis of the SIPA value in Indonesia, including its potential and readiness to be implemented in the National Medium-Term Development Plan 2025-2029. It also evaluates the connections between SIPA and regional/state budget and provides policy recommendations for the implementation of SIPA in Indonesia. The report concludes that SIPA has the potential to increase the country's development financing capacity and promote sustainable development. It emphasizes the need for a comprehensive evaluation of SIPA's potential and readiness to be implemented in the National Medium-Term Development Plan 2025-2029.