Indonesia and the UK Join Forces to Mobilise Green Finance
Jakarta, CNBC Indonesia - The Indonesian Financial Services Authority (OJK) has partnered with the UK government to launch the Indonesia-UK Strategic Partnership Working Group on Climate Financing. This collaboration is intended to mobilise funding to support the sustainable finance agenda.
The formation of this working group is a follow-up to the strategic partnership between Indonesia and the UK, which was agreed upon by President Prabowo Subianto and UK Prime Minister Keir Starmer in January.
Acting Chairman of the OJK’s Board of Commissioners, Friderica Widyasari Dewi, said that the transformation of Indonesia’s financial system towards a climate-aligned system is an integral part of the OJK’s and the financial services sector’s commitment to supporting national development strategies and policies.
“We welcome the strong support from the British Government and the British Embassy in encouraging the formation of the Climate Finance Working Group with the OJK,” she said at the Mandarin Hotel Jakarta, Thursday (February 26, 2026).
According to her, the OJK views climate risk management as a strategic and forward-looking component of its supervisory architecture, which serves as a bridge to translate national transition policies and global signals into financial sector governance, risk management, and financing allocation.
At the same event, the OJK’s Executive Supervisor of Banking, Dian Ediana Rae, said that the banking sector continues to have adequate capital resilience to absorb climate-related pressures in a well-managed transition scenario. This is reflected in the CAR ratio, which remains above regulatory limits.
This means that the Indonesian banking sector is not only resilient to climate-related risks but is also in a good position to support Indonesia’s transition to a low-carbon economy.
“A resilient financial system is a key foundation to ensure long-term stability, sustainable growth, and public welfare,” said Dian.
In addition to the launch of the Working Group, the OJK also released two strategic publications, namely the Climate Risk and Banking Resilience Assessment (CBRA) and the Indonesia Banking Sustainability Maturity Report 2025 (SMART).
The CBRA is an assessment framework developed by the OJK in collaboration with the Australian Government and Prospera to measure the impact of climate risks on the resilience of the banking sector in a forward-looking manner, while also providing science-based references for the industry in developing transition strategies and strengthening resilience to medium- and long-term climate risks.
Meanwhile, SMART is the result of an assessment of the level of maturity of sustainable finance implementation in the national banking sector.
This report is expected to be a reference in the preparation of supervisory policy directions to ensure that the implementation of sustainable finance is carried out in a more structured, measurable, and aligned manner with the national transition agenda.
(ayh/ayh)