(FEB NEWS) SURABAYA, MARCH 18, 2025 – As the 2030 deadline for achieving the Sustainable Development Goals (SDGs) approaches, UNICEF Indonesia is strengthening its commitment to fulfilling children's rights by supporting an innovative financing approach in East Java, namely the Integrated Sub-National Financing Framework (ISFF). Developed in collaboration with Universitas Airlangga, ISFF is a strategic instrument for integrating public and innovative financing, while simultaneously promoting transparency, accountability, and alignment with regional development priorities.

Children as a Priority: Challenges and Opportunities in East Java
As a province with a child population of nearly 9 million, East Java has shown progress in the education sector, with a high secondary school enrollment rate of 89.26% in 2023. However, significant challenges remain, particularly the high child stunting rate of 17.7% and the poverty rate of 9.79%, which contribute to limited access to education, healthcare, and other basic needs. The ISFF framework is designed to put children at the center of development financing decisions, prioritizing investments in health, nutrition, and education.
To achieve the SDGs by 2030, East Java is estimated to require a total financing of approximately IDR 2,300 trillion. This figure demonstrates the urgent need for innovative and collaborative financing. With the full support of Universitas Airlangga , ISFF has evolved into a multi-stakeholder collaboration platform, which not only strengthens the capacity of local governments but also encourages the active involvement of the private sector to create sustainable development impact.

One Vision FGD: Cross-Sector Support for ISFF
To strengthen the foundation of ISFF implementation, three Focus Group Discussion (FGD) sessions were held from February to March 2025, involving cross-sector actors, with the following details:
1) Capital Market Sector – Involving the East Java Indonesia Stock Exchange (IDX) which focused on capital mobilization through initial public offerings (IPOs), as well as the issuance of green bonds and social bonds. In this discussion, the IDX highlighted the important role of green bonds and social bonds in supporting the financing of child-focused projects, while identifying challenges in the form of financial literacy gaps and the mismatch of CSR programs with the real needs of the community.
2) Islamic Finance Sector – This FGD involved institutions such as Baznas, LAZISMU, YDSF, LMI, and others, who together discussed the strategy of aligning Zakat, Infaq, Sadaqah, and Waqf (ZISWAF) funds with the financing objectives of ISFF, so that the management of religious funds can be more focused in supporting inclusive and equitable development.
3) Financial Sector and Private Sector – The discussion also featured representatives from Bank Indonesia, the East Java Financial Services Authority (OJK), the Directorate General of Treasury of the Ministry of Finance of the East Java Region, Bank Jatim, Bank Muamalat, Bank Syariah Indonesia (BSI) Surabaya, and the Indonesian Chamber of Commerce and Industry (KADIN). The discussion focused on optimizing SDG project financing through green finance, microfinance, and Public-Private Partnership (PPP) approaches.
While the ISFF initiative has gained positive momentum, stakeholders also noted a number of challenges that need to be addressed immediately. These include low levels of financial literacy, regulatory barriers that limit financing innovation, and the lack of an adequate monitoring and evaluation system to ensure accountability in the implementation of investments focused on child welfare.

The ISFF emerged not only as a financing framework but also as a model for innovation and cross-sector collaboration, strengthening East Java's readiness to shape a new, more inclusive and sustainable development landscape. By leveraging resources and strategic partnerships, the ISFF equips the province with the tools and networks to create real impact for future generations, demonstrating that child-centered financing is the best investment for the future.