BKPM: ESG implementation affects project financing access

Jakarta (ANTARA) – The Ministry of Investment and Downstreaming/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 influencing access to financing,” said Heldy Satrya Putera, Deputy for Strategic Investment Downstreaming at the ministry, speaking on the sidelines of the Indonesia Critical Minerals Multi-Stakeholder Forum 2026 in Jakarta on Thursday.

Heldy urged managers of downstreaming projects to establish good governance while taking ESG implementation into account. He also called on financial institutions and investors to give greater consideration to ESG when assessing projects.

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

To align 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 inevitably have to meet those requirements. They are also related to costs and other factors,” he said.

“A new equilibrium will emerge in response to these demands, including in pricing. Prices will adjust, and people will also be willing to buy if their environment remains sustainable and their health is protected,” Heldy said.