OJK Opens Possibility of Setting Green Credit Targets for Banks

The Financial Services Authority (OJK) has opened the possibility of implementing green credit distribution targets for banks to encourage an increase in the financial services sector’s contribution to achieving net zero emissions (NZE). Agus Firmansyah, Head of the Integrated Financial Services Sector Surveillance and Policy Department at OJK, stated that the distribution of green credit by banks is currently voluntary. “It is not impossible that we will also provide targets to banks, for example, what percentage of green credit must be distributed. Currently, it is still voluntary, but in the future, it is not impossible that we will start asking banks to set their own green credit distribution targets,” Agus said after the launch of the Green IKM Empowerment Programme with the Ministry of Industry in Jakarta on Thursday (23/7/2026). According to him, the establishment of these targets is expected to encourage banks to be more active in channelling financing to sectors that support the green economy, including green small and medium industries (IKM). “So that they are also more active in providing financing to green IKMs,” he said. He added that this step also aims to enable the OJK to map the magnitude of the financial services sector’s contribution to supporting the government’s strategic programmes, particularly achieving the NZE target. “So that we can increasingly know how much green credit has been distributed in Indonesia by banks, because we also support the government’s programme objectives to achieve net zero and so on,” he stated. Agus assessed that the programme launched by the Ministry of Industry related to strengthening green industry is a strategic step that aligns with the OJK’s policy direction in encouraging sustainable financing. The Ministry of Industry, through the Directorate General of Small, Medium, and Miscellaneous Industries (IKMA), introduced the Green IKM Empowerment Programme as a strategic effort to encourage IKMs to implement industrial activities that are more competitive, sustainable, and environmentally sound. The programme is expected to produce IKMs that implement green industrial practices in their businesses, while also creating role models that can serve as inspiration, examples of good practice, and drivers of transformation for other IKMs in various regions across the country.