Jakarta (ANTARA) - The Indonesian Financial Services Authority (OJK)\nand the Government of the United Kingdom have formed a climate finance\nworking group as an effort to strengthen cooperation in funding the\ntransition to a low-carbon economy.<\/p>\n
The working group, named the Indonesia-UK Strategic Partnership\nWorking Group on Climate Financing, is a follow-up to the strategic\npartnership between Indonesia and the UK, which was agreed upon by\nIndonesian President Prabowo Subianto and British Prime Minister Keir\nStarmer in January.<\/p>\n
\u201cThis collaboration is expected to accelerate innovation in\ntransition finance and deepen the strategic partnership between\nIndonesia and the United Kingdom, as has been reaffirmed by the\nPresident of the Republic of Indonesia, Prabowo Subianto,\u201d said Acting\nChairman of the OJK Board of Commissioners, Friderica Widyasari Dewi, at\nthe 2nd Indonesia Climate Banking Forum (ICBF) in Jakarta, Thursday.<\/p>\n
Friderica, who is affectionately known as Kiki, views climate risk\nmanagement as a strategic and forward-looking component in the\nsupervisory architecture. This approach bridges national transition\npolicies and global signals into the governance of the financial sector,\nrisk management, and financing allocation.<\/p>\n
On the same occasion, the OJK\u2019s Executive Supervisor of Banking, Dian\nEdiana Rae, said that the banking sector has adequate capital resilience\nto absorb climate risk pressures in a well-managed transition\nscenario.<\/p>\n
This is reflected in the capital adequacy ratio (CAR), which remains\nabove the regulatory limits. According to him, this condition shows that\nthe Indonesian banking sector is not only resilient to climate risks but\nis also in a strong position to support the transition to a low-carbon\neconomy.<\/p>\n
\u201cA resilient financial system is a key foundation to ensure long-term\nstability, sustainable growth, and public welfare,\u201d said Dian.<\/p>\n
Meanwhile, the UK Minister for the Indo-Pacific, Seema Malhotra,\nemphasized that the challenge of climate risk requires a collective\nresponse across authorities and industry players.<\/p>\n
\u201cBanks, regulators, and investors are all exposed to climate-related\nshocks. Therefore, financial regulators and the banking sector need to\nmove in the same direction, with the same speed and understanding of\nfuture risks,\u201d she said.<\/p>\n
She added that the resilience of the financial system is not only\nrelated to mitigating risks but also to the ability to capture green\neconomic opportunities.<\/p>\n
\u201cTogether, we believe that climate risks can be transformed into\nopportunities through close cooperation and the opening of access to the\nfinancing needed for a stronger and greener future,\u201d said Seema.<\/p>\n
In addition to the launch of the working group, the OJK also released\ntwo strategic publications, namely the Climate Risk and Banking\nResilience Assessment (CBRA) and the Indonesia Banking Sustainability\nMaturity Report 2025 (SMART).<\/p>\n
The CBRA is an assessment framework developed by the OJK together\nwith the Australian Government and Prospera to measure the impact of\nclimate risks on the resilience of the banking sector in a\nforward-looking manner. This framework is expected to become a\nscience-based reference for the industry in developing transition\nstrategies and strengthening resilience to climate risks in the medium\nand long term.<\/p>\n
Meanwhile, SMART is the result of an assessment of the level of\nmaturity of sustainable finance implementation in the national banking\nsector. The report is expected to be a reference in preparing\nsupervisory policy directions so that the implementation of sustainable\nfinance is more structured, measurable, and in line with the national\ntransition agenda.<\/p>\n
In the future, the ICBF is planned to be a periodic forum as a forum\nfor coordination and collaboration between authorities, ministries,\ngovernment agencies, and the financial services industry in providing\nmeasurable sustainability policy directions and building market\nconfidence to encourage climate and sustainable finance in a sustainable\nmanner.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/ojk-and-the-uk-form-working-group-for-climate-finance-1772113863", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }