OJK Launches Indonesia-UK Working Group to Strengthen Climate Finance
The Indonesian Financial Services Authority (OJK) and the Government of the United Kingdom have officially launched the Indonesia-UK Strategic Partnership Working Group on Climate Financing to strengthen the mobilisation of climate finance and the resilience of the national banking sector.
The launch took place at the 2nd Indonesia Climate Banking Forum in Jakarta as part of efforts to strengthen climate risk management and support the transition to a low-carbon economy.
Acting Chairman of the OJK Board of Commissioners, Friderica Widyasari Dewi, said that aligning the financial system with climate goals is part of the national development strategy.
“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. This collaboration is expected to accelerate innovation in transition finance while deepening the strategic partnership between Indonesia and the United Kingdom, as reaffirmed by the President of the Republic of Indonesia, Prabowo Subianto,” said Friderica.
This working group is a follow-up to the strategic partnership agreement between President Prabowo and British Prime Minister Keir Starmer in January. The inauguration was carried out by the UK Minister for the Indo-Pacific, Seema Malhotra, together with OJK leaders and representatives of the British Government.
The Head of Banking Supervision at the OJK, Dian Ediana Rae, stated that banking capital remains strong, as reflected in the CAR ratio which is above the required level, so it is considered capable of absorbing climate risk pressures in transition scenarios.
The OJK also released two reports, namely the Climate Risk and Banking Resilience Assessment and the Indonesia Banking Sustainability Maturity Report 2025, as a reference for strengthening resilience and implementing sustainable finance in the banking sector.
Indonesia’s efforts to achieve the Forestry and Other Land Use (FOLU) Net Sink 2030 target still face fundamental challenges, namely a massive funding gap.
Various elements of Indonesian civil society, who also attended COP30 in Belém, Brazil, continue to push for transparency and commitment in global climate finance schemes.
The cooperation with the University of Waterloo is part of the FINCAPES Project which is funded by the Government of Canada.