IIF Strengthens Climate Risk Governance
JAKARTA - PT Indonesia Infrastructure Finance (IIF) reiterated its commitment to strengthening climate risk governance as part of the company's strategy as a catalyst for sustainable infrastructure development. This commitment was conveyed at the Climate Risk Forum and Workshop organized by the Climate Policy Initiative (CPI) on April 22, 2026 in Jakarta.
The forum is a knowledge-sharing platform that aims to deepen understanding of the impact of climate risks on the financial services sector while strengthening risk management strategies in a practical manner. Forum participants include banks, non-bank financial institutions, project developers, research institutions, and other related stakeholders who have concerns about climate risk issues and sustainable finance.
President Director & CEO of IIF, Rizki Pribadi Hasan, emphasized that climate risk management is the foundation of IIF's business sustainability in the future.
"As an infrastructure financing institution, we have a responsibility to ensure that every rupiah we disburse is not only financially viable, but also resilient to climate risks. This step is in line with IIF's vision as a catalyst for sustainable infrastructure development in Indonesia," he said in a written statement, Tuesday, April 28.
Through the support of Technical Assistance from CPI, IIF has integrated climate risk management into governance, strategy, risk management, and business processes. The implementation is realized through the Climate Risk Management Policy which was prepared together with CPI in 2025.
Since September 2025, IIF requires a Climate Risk Assessment in every new project assessment and annual review of the portfolio before it is submitted to the Investment Committee. The results of the assessment are periodically summarized and reported to the Risk Management Committee and the Risk Monitoring Committee.
After one year of implementation, IIF targets to have a comprehensive mapping of climate risk exposure across the portfolio, including an estimate of the potential impact of actual losses, in accordance with climate risk disclosure best practices.
In the presentation material presented, Chief Risk Officer IIF, Lestari Umardin, explained that climate risk integration is not merely a fulfillment of regulations, but part of the investment decision-making process.
"With Climate Risk Assessment, we can identify, measure, and mitigate physical and transition risks from the start. This protects our portfolio and ensures that the projects we finance are ready to face future climate scenarios," he explained.
In line with the preparation for the implementation of Climate Risk Management & Scenario Analysis (CRMS), IIF has started to disclose sustainability both qualitatively and quantitatively, although the new reporting obligation will apply in 2028 based on the latest regulatory provisions.
Qualitative disclosure includes governance principles and risk management, while quantitative disclosure includes Scope 1, 2, and 3 emission data. Some of these disclosures have been published in the IIF Sustainability Report 2025.
To support this, IIF has built internal capabilities in developing calculation methodologies for Scope 1, 2, and 3 emissions that have been verified by Carbon Trust, a global climate consulting company. This capability has also become part of IIF's ESG Advisory service to clients to help meet sustainability standards.