Speaker: Bapak Joko Siswanto Direktur Keuangan Berkelanjutan OJK

Joko Siswanto explained the growing importance of sustainable finance in supporting Indonesia’s response to climate change and achieving its net-zero emissions target. He outlined how climate risks increasingly affect the economy, society, and businesses, making sustainability a strategic business consideration rather than solely an environmental issue. He also highlighted OJK’s role in building the sustainable finance ecosystem through regulations, green taxonomy, sustainability disclosures, and collaboration with financial institutions to channel investments toward sustainable economic activities.

Key Takeaways:

• Climate change poses significant environmental, social, and economic risks, making sustainable development and climate resilience essential for Indonesia’s long-term growth.
• Indonesia has strengthened its commitment to sustainability through the Paris Agreement, enhanced Nationally Determined Contributions (NDC), and its target to achieve net-zero emissions by 2060 or earlier.
• Sustainable finance aligns economic growth with environmental protection and social well-being, encouraging businesses and financial institutions to integrate sustainability into investment and business decisions.
• OJK has developed supporting policies, including the Indonesian Green Taxonomy and sustainable finance regulations, to establish common standards, reduce greenwashing, and direct capital toward credible sustainable activities.
• Sustainability reporting is evolving toward double materiality, requiring companies to disclose both their environmental and social impacts, as well as how sustainability-related risks affect their financial performance and business resilience.