We need to ensure that the sustainable economy that is being developed in Indonesia is based on bankable investments.
Jakarta (ANTARA) - The Financial Services Authority (OJK) is preparing the financial sector to support the Indonesian government's green commitments, such as those related to the Paris Agreement and the United Nations (UN) Sustainable Development Goals.

"We need to ensure that the sustainable economy that is being developed in Indonesia is based on bankable investments," Head of the OJK's Board of Commissioners Mahendra Siregar said at the 1st OJK International Research Forum, held here on Monday.

Financing must be able to promote sustainable economic development, which upholds climate change commitments without hindering economic and social progress, he added.

Economic growth can support social stability, and these two pillars are prerequisites for meeting climate change commitments, he explained.

He said that to support the government's green commitments, the OJK has taken five measures.

In 2015, OJK published the sustainable financing road map, which aims to build awareness about sustainable financing.

The road map was later expanded to include the steps to building a sustainable financing ecosystem, increasing the demand for green funds, and bolstering the adoption of sustainable finance in the financial services industry.

According to Siregar, the second measure has been the issuance of the national green taxonomy as a comprehensive guide for sustainable financing users.

The taxonomy refers to a globally developed model, including the ASEAN Taxonomy for Sustainable Finance Version 2, which was published in the second half of 2023.

The third measure has been conducting business meetings and networking activities by enabling business discussions between green project owners and potential investors to encourage greater financing and investment in the green sector.

Furthermore, he informed that the fourth measure has been the provision of incentives for the issuance of green bonds and financing for the electric vehicle ecosystem.

The fifth measure has covered the carbon trading framework and regulations to support emission reduction, he added.

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Translator: Agatha V, Kenzu
Editor: Rahmad Nasution
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