JAKARTA, KOMPAS.com \u2013 The Indonesian Financial Services Authority\n(OJK) has formed a climate finance working group in partnership with the\nUK government. This initiative is part of efforts to encourage funding\nfor the transition to a low-carbon economy.<\/p>\n
The Indonesia\u2013UK Strategic Partnership Working Group on Climate\nFinancing was launched at the 2nd Indonesia Climate Banking Forum in\nJakarta, on Thursday (26\/2\/2026).<\/p>\n
Acting Chairman of the OJK\u2019s Board of Commissioners, Friderica\nWidyasari Dewi, said that the transformation of the financial system\nmust be in line with the national climate change agenda.<\/p>\n
\u201cWe welcome the strong support from the British Government and the\nBritish Embassy in encouraging the formation of the Climate Finance\nWorking Group with the OJK,\u201d said Friderica.<\/p>\n
\u201cThis collaboration is expected to accelerate innovation in\ntransition finance while also deepening the strategic partnership\nbetween Indonesia and the UK, as reaffirmed by the President of the\nRepublic of Indonesia, Prabowo Subianto,\u201d she added.<\/p>\n
The OJK has placed climate risk management as part of its supervisory\narchitecture. This approach aims to translate national transition\npolicies into banking governance, risk management, and financing\npractices.<\/p>\n
Executive Director of Banking Supervision at the OJK, Dian Ediana\nRae, said that the national banking sector still has strong capital\nbuffers. The capital adequacy ratio remains above the required\nlevel.<\/p>\n
According to him, this provides room for banks to absorb climate risk\npressures in a managed transition scenario.<\/p>\n
\u201cA resilient financial system is the main foundation to ensure\nlong-term stability, sustainable growth, and public welfare,\u201d said\nDian.<\/p>\n
Seema Malhotra believes that climate risks cannot be addressed by a\nsingle authority. Banks, regulators, and investors are all exposed to\nclimate shocks.<\/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
\u201cTogether, we believe that climate risks can be transformed into\nclimate opportunities through close cooperation and by unlocking the\nfinancing needed for a stronger and greener future,\u201d said Seema.<\/p>\n
In addition to launching the working group, the OJK released two\nreports. First, Climate Risk and Banking Resilience Assessment. Second,\nIndonesia Banking Sustainability Maturity Report 2025.<\/p>\n
The Climate Risk and Banking Resilience Assessment is an assessment\nframework to measure the impact of climate risks on banking resilience\nin a forward-looking manner. This framework was developed in\ncollaboration with the Australian Government and Prospera as a\nscience-based reference for the industry.<\/p>\n
Meanwhile, the Indonesia Banking Sustainability Maturity Report 2025\nprovides a picture of the level of maturity in the implementation of\nsustainable finance in the banking sector. This report will be a\nreference in preparing future supervisory directions.<\/p>\n
The Indonesia Climate Banking Forum is planned to be a periodic\nforum. This forum will be a space for coordination between authorities,\nministries, agencies, and the financial services industry to align the\ndirection of climate finance policies.<\/p>\n
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