OJK and the UK Form Working Group for Climate Finance
Jakarta (ANTARA) - The Indonesian Financial Services Authority (OJK) and the Government of the United Kingdom have formed a climate finance working group as an effort to strengthen cooperation in funding the transition to a low-carbon economy.
The working group, named the Indonesia-UK Strategic Partnership Working Group on Climate Financing, is a follow-up to the strategic partnership between Indonesia and the UK, which was agreed upon by Indonesian President Prabowo Subianto and British Prime Minister Keir Starmer in January.
“This collaboration is expected to accelerate innovation in transition finance and deepen the strategic partnership between Indonesia and the United Kingdom, as has been reaffirmed by the President of the Republic of Indonesia, Prabowo Subianto,” said Acting Chairman of the OJK Board of Commissioners, Friderica Widyasari Dewi, at the 2nd Indonesia Climate Banking Forum (ICBF) in Jakarta, Thursday.
Friderica, who is affectionately known as Kiki, views climate risk management as a strategic and forward-looking component in the supervisory architecture. This approach bridges national transition policies and global signals into the governance of the financial sector, risk management, and financing allocation.
On the same occasion, the OJK’s Executive Supervisor of Banking, Dian Ediana Rae, said that the banking sector has adequate capital resilience to absorb climate risk pressures in a well-managed transition scenario.
This is reflected in the capital adequacy ratio (CAR), which remains above the regulatory limits. According to him, this condition shows that the Indonesian banking sector is not only resilient to climate risks but is also in a strong position to support the 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.
Meanwhile, the UK Minister for the Indo-Pacific, Seema Malhotra, emphasized that the challenge of climate risk requires a collective response across authorities and industry players.
“Banks, regulators, and investors are all exposed to climate-related shocks. Therefore, financial regulators and the banking sector need to move in the same direction, with the same speed and understanding of future risks,” she said.
She added that the resilience of the financial system is not only related to mitigating risks but also to the ability to capture green economic opportunities.
“Together, we believe that climate risks can be transformed into opportunities through close cooperation and the opening of access to the financing needed for a stronger and greener future,” said Seema.
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 together 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. This framework is expected to become a science-based reference for the industry in developing transition strategies and strengthening resilience to climate risks in the medium and long term.
Meanwhile, SMART is the result of an assessment of the level of maturity of sustainable finance implementation in the national banking sector. The report is expected to be a reference in preparing supervisory policy directions so that the implementation of sustainable finance is more structured, measurable, and in line with the national transition agenda.
In the future, the ICBF is planned to be a periodic forum as a forum for coordination and collaboration between authorities, ministries, government agencies, and the financial services industry in providing measurable sustainability policy directions and building market confidence to encourage climate and sustainable finance in a sustainable manner.