Supporting sustainable development can be done from various sides; to reduce emissions & achieve Indonesia’s NDC, we need all hands on deck.
On 15-17 July, Tri Hita Consulting’s President Director, Verena Streitferdt supported Marya Tisnandya as our Sustainable Finance Consultant, who were invited as experts on the international carbon market to present at Carbon Market for Banks and Non-Banking Financial Institutions Socialisation. This socialisation was held for three days at the Le Meridien Hotel Jakarta and the BEI office. OJK and GIZ CASE organised the socialisation with the support from ESDM. Marya presented a session about lessons learned from the international carbon market, including creating an ideal carbon market ecosystem. She also highlighted some examples from the neighbouring Southeast Asia countries and the EU. The event was attended by 37 participants from around 22 financial (FIs) and non-banking financial institutions (NBFIs).
By publishing the OJK Sustainable Finance Roadmap for Indonesia 2021–2025, it is clear that Indonesia’s direction is heading towards green finance. In the session, participants from the banking sector and the speakers discussed the potential cooperation between banks and OJK in improving the existing online carbon market with better security and user-friendly systems. Banks are seen as having more experience in this field due to their expertise in developing digital finance.
With the power to decide who and what project they can finance, the Banking sector holds a strategic position in green financing. Banks should play a role in identifying potential debtors based on their climate credibility. Meanwhile, NBFIs play pivotal roles in supporting the success of the projects through investments and insurance products. The event concludes the importance of FIs in playing the role of both the brake and the accelerator in green financing. FIs & NBFIs can incentivise carbon market projects and limit loans to the emission-intensive sectors.
As the initial stage of the Indonesian carbon market, there are many opportunities for exchange and learning. Therefore, we are delighted to be invited to participate in this event.
Once again, this proves that our primary Indonesian culture, “gotong royong”, encourages the progress of Indonesia’s green development. We hope that this kind of socialisation can be expanded in scope by presenting to potential issuers/companies developing carbon reduction projects. This will increase the knowledge and capacity of issuers to prepare themselves to participate in the carbon market.
