Accelerating the Country’s Transition to Low Carbon and Climate Resilient Economy

Indonesia has advanced regarding sustainable finance in recent years.  POJK51 regulation triggered financial institutions to establish the Indonesia Sustainable Finance Initiative, which wants to promote sustainable finance. Thus it contributes to achieving the Sustainable Development Goals (SDG) and accelerates the country’s transition to a low carbon and climate resilient economy.

 

Several agencies work together to establish Sustainable finance In Indonesia. The Ministry of Finance is crucial in overseeing sustainable investment tools such as sustainable related bonds. The Financial Services Authority (Otoritas Jasa Keuangan or OJK) regulates and supervises various sustainable finance instruments, by for example issuing the Green Taxonomy. The Indonesia Stock Exchange (IDX) develops ESG indices, allowing investors to track companies’ performance based on environmental, social, and governance criteria. These ministries and institutions work together to create a supportive ecosystem for sustainable investment in Indonesia.

 

The principles of sustainable finance in Indonesia are divided into three categories:

  • sustainable business activities,
  • sustainable financing activities, and
  • sustainable investment activities. 

 

Tri Hita Consulting is also active in this field. We have been contracted by Econoler for an IFC contract to conduct a study on Sustainable Finance in Indonesia. If you want to know more, please contact us at  info@trihita-consulting for further information.

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