OJK Partners with the UK to Launch Climate Finance Working Group
JAKARTA, KOMPAS.com – The Indonesian Financial Services Authority (OJK) has formed a climate finance working group in partnership with the UK government. This initiative is part of efforts to encourage funding for the transition to a low-carbon economy.
The Indonesia–UK Strategic Partnership Working Group on Climate Financing was launched at the 2nd Indonesia Climate Banking Forum in Jakarta, on Thursday (26/2/2026).
Acting Chairman of the OJK’s Board of Commissioners, Friderica Widyasari Dewi, said that the transformation of the financial system must be in line with the national climate change agenda.
“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,” said Friderica.
“This collaboration is expected to accelerate innovation in transition finance while also deepening the strategic partnership between Indonesia and the UK, as reaffirmed by the President of the Republic of Indonesia, Prabowo Subianto,” she added.
The OJK has placed climate risk management as part of its supervisory architecture. This approach aims to translate national transition policies into banking governance, risk management, and financing practices.
Executive Director of Banking Supervision at the OJK, Dian Ediana Rae, said that the national banking sector still has strong capital buffers. The capital adequacy ratio remains above the required level.
According to him, this provides room for banks to absorb climate risk pressures in a managed transition scenario.
“A resilient financial system is the main foundation to ensure long-term stability, sustainable growth, and public welfare,” said Dian.
Seema Malhotra believes that climate risks cannot be addressed by a single authority. Banks, regulators, and investors are all exposed to climate shocks.
“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.
“Together, we believe that climate risks can be transformed into climate opportunities through close cooperation and by unlocking the financing needed for a stronger and greener future,” said Seema.
In addition to launching the working group, the OJK released two reports. First, Climate Risk and Banking Resilience Assessment. Second, Indonesia Banking Sustainability Maturity Report 2025.
The Climate Risk and Banking Resilience Assessment is an assessment framework to measure the impact of climate risks on banking resilience in a forward-looking manner. This framework was developed in collaboration with the Australian Government and Prospera as a science-based reference for the industry.
Meanwhile, the Indonesia Banking Sustainability Maturity Report 2025 provides a picture of the level of maturity in the implementation of sustainable finance in the banking sector. This report will be a reference in preparing future supervisory directions.
The Indonesia Climate Banking Forum is planned to be a periodic forum. This forum will be a space for coordination between authorities, ministries, agencies, and the financial services industry to align the direction of climate finance policies.
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