Taj Yasin Seeks Breakthroughs for Easier Access to Green Financing for Central Java SMEs
“These small industries, these SMEs, typically have small collateral, whereas implementing eco-friendly industry requires significant costs,” said Taj Yasin in a statement on Monday (28/09/2026).
He made these remarks while representing the Governor of Central Java, Ahmad Luthfi, delivering a keynote speech during a Focus Group Discussion (FGD) on Strategic Collaboration themed ‘Unraveling Barriers to Green Financing in the Small and Medium Enterprise Sector’. The event was organised by the Central Java Financial Services Authority (OJK) at the Gradhika Bhroll Bhakti Praja Building, Semarang, today.
Commonly known as Gus Yasin, he noted that while the use of green technology can make operational costs more efficient in the long term, these benefits take time to materialise, whereas capital must be prepared from the outset.
Consequently, he requested that the results of the FGD do not merely end as a discussion forum but instead produce financing breakthroughs tailored to the characteristics of SMEs.
“This is what we must push together and seek breakthroughs for,” he said.
He assessed that these discussions are vital as the industrial sector remains one of the main pillars of Central Java’s economy. In the second quarter of 2026, Central Java’s economy grew by 5.71 per cent year-on-year, higher than the national economic growth of 5.29 per cent. Cumulatively, Central Java’s economy grew by 5.80 per cent in the first half of 2026.
The industrial sector is the largest contributor to Central Java’s economy, with a 33.18 per cent contribution, followed by the trade sector at 13.78 per cent and agriculture at 12.56 per cent.
“We must not only talk about how to maintain growth; we must also discuss how that growth can create higher productivity, stronger competitiveness, higher-quality employment, and long-term economic sustainability,” said Taj Yasin.
Meanwhile, the Director of Supervision of Financial Service Provider Conduct, Education, Consumer Protection, and Strategic Management Services of the Central Java OJK, Taufik Andriawan, stated that green financing is necessary as part of efforts to mitigate environmental crisis risks and support the direction of Central Java’s 2025-2030 development.
Taufik noted that banking in Central Java fully supports green financing through the distribution of credit to sectors with the potential to support green initiatives, although the number of credit applications in this sector has remained relatively small so far.
Taufik added that increasing green financing requires collaboration between the government, OJK, Bank Indonesia, the financial services industry, academics, environmental experts, and industry players.
“Synergy and collaboration from all stakeholders are required to increase the potential of green financing in Central Java,” said Taufik.