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OJK urges financial sector to support SDGs
Sustainable banking: The Financial Services Authority (OJK) says Indonesiaâs banks and other financial service providers must play a greater role in supporting the achievement of the countryâs Sustainable Development Goals (SDGs)
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Sustainable banking: The Financial Services Authority (OJK) says Indonesiaâs banks and other financial service providers must play a greater role in supporting the achievement of the countryâs Sustainable Development Goals (SDGs). (The Jakarta Post) (OJK) says Indonesiaâs banks and other financial service providers must play a greater role in supporting the achievement of the countryâs Sustainable Development Goals (SDGs). (The Jakarta Post)
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span class="inline inline-center">Sustainable banking: The Financial Services Authority (OJK) says Indonesia's banks and other financial service providers must play a greater role in supporting the achievement of the country's Sustainable Development Goals (SDGs). (The Jakarta Post)
The Financial Services Authority (OJK) is encouraging banks and other financial services to increase profits through sectors that have a high multiplier effect, aiming to create a financial system that can aid the attainment of the Sustainable Development Goals (SDGs).
OJK chief Muliaman D. Hadad said Indonesia's financial players should play an important role as agents able to accelerate the country's development and promote economic growth for the welfare of its people.
"Funding sectors that have a large multiplier effect can drive sustainable growth. To avoid economic bubbles, Indonesia's financial sector must work hand-in-hand with the real sector," he said in an international seminar themed 'Sustainable Finance to Support Development Goals' in Jakarta on Monday.
Muliaman added that the OJK had started to explore the development of green bonds and environmental insurance for the capital market.
The green bond market, he said, was continuing to grow globally, with green bonds issued amounting to US$ 11 billion in 2013, while by the middle of 2015, outstanding global green bonds had reached $ 65.5 billion.
In cooperation with the Environment and Forestry Ministry, the OJK had published a Sustainable Financial Roadmap for the 2015-2019 period, containing guidelines and directives for sustainable financial development in Indonesia, Muliaman said.
"It is expected that the sustainable financial roadmap can serve as a medium for Indonesia's financial services industry, comprising banks, capital markets and non-bank institutions, to continue to create innovative products and services, in line with the country's development and societal needs," he said.
OJK deputy commissioner for bank supervision Mulya E Siregar said the sustainable finance program aimed to increase the share of financing schemes in priority sectors that could help the country fulfill the SDGs, such as energy, infrastructure, processing, agriculture and small and medium-sized enterprises (SME). It also aimed to improve the competitiveness of financial institutions in Indonesia, Mulya added.
"With this roadmap, Indonesia becomes the first country in ASEAN to implement sustainable financing," he said.
Assistant to the National Development Planning Minister for economic affairs Leonard Tampubolon admitted that achieving SDG targets depended on the availability of funds.
"The availability of funds is still limited because of the ongoing global economic uncertainty. Efforts to explore access to funding are essential, including the ways and instruments used to channel the funds,' he said. (ebf)(+)
