UNAIR NEWS – As the world nears the 2030 Sustainable Development Goals (SDGs) deadline, UNICEF Indonesia reaffirms its commitment to children’s rights by supporting East Java’s innovative financing approach through the Integrated Sub-National Financing Framework (ISFF). Developed with Universitas Airlangga’s academic support, the ISFF serves as a strategic tool to mobilize domestic and international resources by integrating public finance and innovative financing while ensuring transparency and alignment with local priorities.
Child rights as priority : Challenges and opportunities in East Java
East Java, home to nearly 9 million children, has achieved progress in education, with senior secondary school participation at 89.26% in 2023. However, child stunting remains high at 17.7%, and poverty affects 9.79% of the population, limiting access to education, health, and basic services. The ISFF framework places children at the center of financing decisions, prioritizing investments in health, nutrition, and education.
East Java requires an estimated IDR 2,300 trillion to meet its SDG targets by 2030, reflecting the urgent need for innovative financing. Supported by Universitas Airlangga, ISFF has evolved into a multi-stakeholder collaboration, empowering local governments while enabling private sector engagement to drive sustainable impact.
FGDs One Vision: Cross Sector Support for ISFF
To build strong foundations, three strategic Focus Group Discussion (FGDs) were convened between February and March 2025, engaging diverse actors:
- Capital Market Sectors – Indonesia Stock Exchange (IDX) East Java which focused on mobilizing capital through IPOs, green bonds, and social bonds. The IDX East Java highlighted the role of green and social bonds in funding child-focused projects, while also addressing gaps in financial literacy and CSR alignment.
- Islamic and Religious-Based Finance – Including Baznas, LAZISMU, YDSF, and others to align Zakat, Infaq, Sadaqah, and Waqf (ZISWAF) with ISFF financing goals.
- Financial Institutions and Private Sectors – Featuring Bank Indonesia, Financial Services Authority East Java, Directorate General of Treasury (Direktorat Jenderal Perbendaharaan), Ministry of Finance East Java Regional Office, Bank Jatim, Bank Muamalat, BSI Surabaya, and KADIN to explore financing for SDGs projects through green finance, microfinance, and KPBU models.
Despite strong momentum, stakeholders identified challenges including financial literacy, regulatory barriers, and the need for enhanced monitoring to ensure accountability in child-focused investments. These dialogues affirmed a collective vision: sustainable development must be a shared financial responsibility, with children at the core.
As East Java advances this transformative initiative, ISFF emerges not just as a financing framework but as a model of innovation and collaboration, equipping the province with the tools and partnerships to reshape its development landscape for the benefit of future generations.
Author: Nabila Izatul Muslimah
Editor: Yulia Rohmawati
