In ACMF, OJK Supports Sustainable Capital Market In ASEAN

Chairman of the OJK DK Mahendra Siregar (Photo: Antara)

JAKARTA - The Financial Services Authority (OJK) supports the commitment of the ASEAN Capital Market Forum (ACMF) in realizing the sustainable Capital Market roadmap in ASEAN to improve the sustainable economy throughout the region.

The series of ACMF 2023 activities took place from October 16 to October 18, 2023, which included ACMF Chairs Meeting, ACMF International Conference, and ACMF-ISSB Technical Training attended by delegates from ACMF members, Asian Development Bank (ADB), as well as perpetrators and stakeholders of the Capital Market sector in ASEAN.

Chairman of the OJK Board of Commissioners Mahendra Siregar said the ACMF's sustainable Capital Market Roadmap has strengthened the region's commitment to the global climate agenda as well as overcome specific challenges and opportunities for sustainable development and financial markets in Southeast Asia.

Mahendra added that Indonesia's progress in supporting transition financing and a strong commitment to encourage sustainable finance to facilitate the transition to a low-carbon economy.

According to Mahendra, achieving a sustainable, inclusive, and fair transition requires the participation of stakeholders and international cooperation.

"To ensure this, and as I mentioned before, we need to realize the important role played by the industry, for example, providing added value to the economy," Mahendra said in his official statement, Wednesday, October 18.

Chief Executive of the Capital Market Supervisory, Derivative Finance, and OJK Carbon Exchange, Inarno Djajadi, said that one of the main enthusiasms of Indonesia's leadership in ASEAN is to encourage ASEAN to become the center of growth, Epicentrum of Growth.

"In facing environmental and social challenges caused by climate change and in line with the goals outlined in the Paris Agreement, it is very important for us, as a collective force, to play an important role in the global transition agenda towards a low-carbon economy and a sustainable future," said Inarno.

Furthermore, Inarno conveyed several main initiatives that had been achieved during the OJK chairmanship in the ACMF 2023 (ACMF Significant Milestones), consisting of:

Meanwhile, the issuance of the ASEAN Transition Finance Guidance, which is a general guideline on how a plan to transition to a low-carbon economy can be said to be credible, transparent, and inclusive;

Penyelesian proses revisi ASEAN Corporate Governance Scorecard, yang merujuk pada revisi OECD Principles on Corporate Governance dimana sustainability menjadi pilar utama yang baru. Scorecard ini akan digunakan dalam penilaian untuk menentukan Top Publicly Listed Companies (PLCs) di ASEAN yang akan dimulai dengan penilaian di tahun 2024 untuk tahun laporan 2023.

On the other hand, ACMF continues to encourage increased quality of sustainability disclosure by collaborating with the ISSB as the global standard maker for sustainability disclosure. This collaboration has been outlined in a dialogue protocol signed at yesterday's meeting.

"Through this collaboration, ACMF can intensify the capacity building program for both ACMF members as regulators and also for Handbook Sustainability and Launch Report Companies for ASEAN Green Lane, to facilitate cross-border mutual fund offers based on sustainability," he explained.

Inarno said that the ACMF Milestone is in line with the focus of ACMF's initiative on the transition agenda towards reducing emissions to achieving net zero commitment in the region, and ACMF as a capital market regulator forum in ASEAN is committed to contributing to the big agenda.

Meanwhile, Chief Executive of the Financial Sector Technology Innovation Supervision, Digital Financial Assets and OJK Crypto Assets Hasan Fawzi said that the Capital Market plays an important role in achieving climate goals because large amounts of investment and funding are needed to get to the target in question.

Hasan said that through the mobilization and allocation of financing, the capital market is expected to complement bank loans and public investment. In order to achieve this at the regional level, efforts need to be aligned.

"The authorities in each region must work together to design and implement a joint regulatory framework outside the country's borders. The ACMF discussion is clear evidence of this effort," Hasan said.

Hasan said ACMF's goal was to develop the Capital Market in the ASEAN region with a focus on harmonizing the regulatory framework in order to achieve better Capital Market integration in ASEAN.