BKPM: ESG Adoption Affects Access to Project Financing

Jakarta (ANTARA) – The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) said companies’ compliance with environmental, social and governance (ESG) standards affects a project’s access to financing.

“Good governance has become an important factor affecting access to financing,” Heldy Satrya Putera, Deputy for Strategic Investment Downstreaming at the ministry and BKPM, told reporters on the sidelines of the Indonesia Critical Minerals Multi-Stakeholder Forum 2026 in Jakarta on Thursday.

Heldy therefore urged managers of downstreaming projects to establish good governance while taking ESG implementation into account.

He also hoped that financing institutions and investors would pay greater attention to ESG implementation when assessing a project.

“They are demanding not only the final results, but also governance and production processes that meet ESG standards,” Heldy said.

To keep pace with global trends, Heldy said projects in Indonesia should pay greater attention to the environment, ensure natural resources are extracted without damaging nature, and respect the rights of communities living near project sites.

“If we want to enter global markets, we automatically have to comply with those requirements. This is also related to costs and other matters,” Heldy said.

“A new equilibrium will emerge in response to those demands, including in pricing. Prices will certainly adjust, and people will also be willing to buy if nature is preserved and their health remains protected,” he said.