OJK Commits to Strengthening Sustainable Finance and Carbon Economy

The Financial Services Authority (OJK) has affirmed its commitment to strengthening the role of the financial services sector, particularly in sustainable finance programmes and the implementation of the carbon economic value programme. This commitment was demonstrated by OJK through its participation in London Climate Action Week (LCAW) 2026, held from 22 to 25 June 2026 in London, United Kingdom. OJK Board of Commissioners Chairperson Friderica Widyasari Dewi stated that OJK is ensuring the sustainable finance and transition financing agenda does not stall as a policy framework but genuinely becomes a credible market mechanism. “The ultimate goal is to create a financial system that is stable, has integrity, and is capable of financing Indonesia’s greener, more resilient, and inclusive economic future,” Friderica said. During the event, Friderica attended various international forums, including The Net Zero Delivery Summit, a series of roundtable discussions with the Centre for Economic Transition Expertise (CETEx) at the London School of Economics and Political Science (LSE), and the Indonesia Climate Leadership Luncheon. She also participated in the Southeast Asia Climate Action Forum, a Satu Karsa Sharing Session with Global Investors, as well as meetings and bilateral discussions with various leading global institutions. “Through various international forums that bring together regulators, governments, businesses, investors, international partners, academics, and global financial industry players, OJK emphasises that the success of the transition to a low-carbon economy requires a credible, transparent financing ecosystem capable of maintaining investor confidence,” Friderica stated. Furthermore, OJK continues to strengthen the sustainable finance architecture through various policies, including the Indonesian Sustainable Finance Taxonomy (TKBI), strengthening sustainability reporting in line with international standards, implementing Climate Risk Management and Scenario Analysis (CRMS), developing transition finance and transition plan guidelines, and developing sustainable financial instruments and market infrastructure. OJK is currently drafting an OJK Regulation (RPOJK) on the Implementation of Sustainable Finance for Financial Services Institutions, Issuers, and Public Companies, revising POJK 51/2017 in line with the development of national (PSPK 1 and 2) and global (IFRS S1 and S2) sustainability disclosure standards, targeted for issuance this year. “OJK wants to ensure that sectors needing to transition are not left behind, but are instead encouraged to have credible transition plans. A successful transition is not just about moving capital to already green sectors, but transforming high-emission sectors to become lower carbon in a gradual, measurable, and responsible manner,” Friderica said. In addition to strengthening the regulatory framework, OJK also introduced various innovative financing initiatives to global investors, one of which is Satu Karsa, a blended finance platform that supports credible, high-integrity nature-based carbon projects in collaboration with the Ministry of Forestry. These initiatives are directed at supporting reforestation and agroforestry activities, restoration of critical land, community empowerment, development of high-quality carbon credits, and the creation of new jobs for local communities. Friderica said Satu Karsa demonstrates that Indonesia’s natural assets must not only be protected but can also become a source of strategic advantage if managed through a transparent, high-integrity framework that benefits communities. “Through a blended finance approach, Indonesia can attract long-term investors to support ecosystem restoration while generating high-quality carbon credits,” Friderica stated. On this occasion, OJK also affirmed its commitment to continuously strengthening the sustainable finance ecosystem while carrying out its role as a member of the Carbon Economic Value (NEK) Steering Committee as mandated in Presidential Regulation Number 110 of 2025, including going forward through the supervision of carbon trading on IDX Carbon and integration with the Carbon Unit Registry System (SRUK). Through POJK Number 14 of 2023 concerning Carbon Trading through the Carbon Exchange, OJK supervises carbon trading in the secondary market to ensure governance, transparency, investor protection, and market integrity. A revision of POJK 14/2023 will be issued in the near future to support the implementation of Presidential Regulation No. 110 of 2025 concerning Carbon Economic Value Instruments and Greenhouse Gas Emission Reduction. Since its launch in 2023, the Indonesia Carbon Exchange has recorded transactions of approximately two million tonnes of CO₂ equivalent with a transaction value exceeding IDR 93 billion, indicating growing market interest in the national carbon trading mechanism. “The Carbon Exchange will only be trusted if the carbon units traded are measured, recorded, traceable, and free from double counting. Therefore, market integrity, data quality, verification credibility, and governance are the main prerequisites for the carbon market to genuinely support transition financing,” Friderica concluded.