East Java ISFF: Innovative Financing Framework in Collaboration with UNAIR and UNICEF
The Integrated Sub-National Financing Framework (ISFF) has been developed to enhance children’s rights in East Java through a collaborative effort involving Universitas Airlangga (UNAIR) and UNICEF Indonesia. As the global community approaches the 2030 Sustainable Development Goals (SDGs) deadline, this framework aims to serve as a strategic tool for effective aggregation of financial resources, blending both domestic and international funding while aligning with local priorities.
Challenges Faced by Children in East Java
In East Java, approximately 9 million children currently face significant challenges, including a child stunting rate of 17.7% and nearly 9.79% of the population living in poverty. While advancements such as an 89.26% participation rate in senior secondary education as of 2023 have been noted, there remains an urgent need for investment in health, nutrition, and education. The ISFF framework seeks to prioritize these critical areas, ensuring that funding decisions focus on the well-being of children.
Financial Requirements for SDG Targets
The estimated financial requirements for East Java to achieve its SDG targets stand at IDR 2,300 trillion, highlighting the necessity for innovative financing models. The ISFF has progressed through the engagement of various stakeholders, fostering cooperation among local governments and the private sector to achieve sustainable outcomes.
Focus Group Discussions
To establish a robust foundation for this initiative, three strategic Focus Group Discussions (FGDs) were held from February to March 2025, involving key sectors including:
Capital Market Sector
Discussions with the East Java branch of the Indonesia Stock Exchange aimed at mobilizing capital through public offerings, green bonds, and social bonds, with a focus on promoting these financial instruments to fund projects centered on children and improving financial literacy.
Islamic and Religious-Based Finance
Collaborations with organizations such as Baznas and LAZISMU sought to align Zakat, Infaq, Sadaqah, and Waqf (ZISWAF) contributions with the financing objectives of the ISFF.
Financial Institutions and Private Sector
Representatives from Bank Indonesia, the Financial Services Authority, local banks, and other financial institutions explored options for funding SDG projects through green finance, microfinance, and public-private partnerships.
Challenges and Collective Responsibility
Participants recognized several challenges during these discussions, including gaps in financial literacy, regulatory obstacles, and the need for improved monitoring to ensure accountability in child-focused investments. These conversations reaffirmed the importance of a collective financial responsibility towards sustainable development, emphasizing the necessity of placing children’s needs at the core of these efforts.
Conclusion
The ISFF initiative represents not only a financial strategy but also a collaborative model aimed at reshaping East Java’s development landscape for the benefit of future generations.
(Source: Universitas Airlangga)
