IIF Integrates Climate Risk into Financing
PT Indonesia Infrastructure Finance (IIF) is tightening climate risk management in infrastructure project financing. This effort is aimed at maintaining portfolio resilience amid rising climate change impacts.
The commitment was expressed at the Climate Risk Forum and Workshop organised by the Climate Policy Initiative (CPI) in Jakarta on Tuesday (22/4/2026). The forum was attended by financial sector players, project developers, and research institutions.
IIF President Director Rizki Pribadi Hasan stated that climate risk management is an essential part of the company’s business strategy. “Climate risk management is the foundation of IIF’s business sustainability moving forward. As an infrastructure financing institution, we have a responsibility to ensure that every rupiah we disburse is not only financially viable but also resilient to climate risks,” said Rizki on Tuesday (27/4/2026).
IIF has integrated climate risks into its governance, strategy, and business processes since 2025. The implementation is carried out through the Climate Risk Management Policy developed jointly with CPI.
Since September 2025, IIF has required climate risk assessments for every new project. Assessments are also conducted periodically on the existing portfolio before submission to the investment committee.
The assessment results are reported to the risk management committee and the risk monitoring committee. IIF targets a comprehensive mapping of climate risk exposure in its portfolio.
IIF Chief Risk Officer Lestari Umardin said that integrating climate risks is part of the investment decision-making process. “With the Climate Risk Assessment, we can identify, measure, and mitigate physical and transition risks from the outset,” she stated.
IIF has also begun qualitative and quantitative climate risk disclosures, even though the reporting obligation only applies from 2028. The disclosures cover governance, risk management, and emissions data.
The company has developed an emissions calculation methodology covering scope 1, scope 2, and scope 3. This methodology has been verified by an international consulting firm.