Promoting Low-Carbon Economy, OJK and UK Form Climate Finance Working Group
The Financial Services Authority (OJK) has strengthened its commitment to driving a transition towards a low-carbon economy by partnering with the UK government to establish the Indonesia–UK Strategic Partnership Working Group on Climate Financing.
This collaboration represents a strategic move to mobilise climate finance whilst strengthening the resilience of Indonesia’s national banking sector in the face of climate change risks. The formation of this working group was announced at the 2nd Indonesia Climate Banking Forum: Climate Risk Management and Banking Resilience to Support Climate Finance Investment, held in Jakarta on Thursday, 26 February 2026.
The forum marks a continuation of the inaugural Indonesia Climate Banking Forum in 2024, which was characterised by the launch of the Climate Risk Management & Scenario Analysis (CRMS) framework as an initial structure for the systematic management of climate risk in the banking sector.
Acting Chairman of the OJK Board of Commissioners, Friderica Widyasari Dewi, stated that steering the transformation of Indonesia’s financial system towards greater alignment with the climate agenda represents an important part of the OJK’s and the financial sector’s commitment to supporting the strategy and direction of national development policy.
“We welcome the strong support of the British Government and the British Embassy in Jakarta in promoting the establishment of the Climate Finance Working Group together with the OJK. This collaboration is expected to accelerate innovation in transition financing whilst deepening the strategic partnership between Indonesia and Britain,” said Friderica.
She explained that the OJK views climate risk management as a strategic component within the supervisory architecture of the financial sector. This step serves as a bridge to translate national transition policies and global signals into governance, risk management, and financing allocation within the financial services sector.
The formation of this working group is a follow-up to the strategic partnership between Indonesia and Britain that was agreed between President Prabowo Subianto and British Prime Minister Keir Starmer in January 2026. The launch was conducted by UK Minister for the Indo-Pacific Seema Malhotra, British Ambassador to Indonesia Dominic Jermey, and OJK leadership.
On the same occasion, the Head of Banking Supervision at the OJK, Dian Ediana Rae, noted that the banking sector continues to maintain adequate capital resilience to absorb pressure related to climate in transition scenarios that are managed well. This is reflected in the capital adequacy ratio (CAR) that remains above regulatory requirements.