Bank Indonesia Encourages G20 Countries To Develop Sustainable Financial Instruments

Governor of Bank Indonesia Perry Warjiyo (Photo: National Committee for the Presidency of the G20 Indonesia)

JAKARTA - Bank Indonesia highlighted the issue of sustainable finance development as one of the six priority agendas in the financial path of the 2022 G20 Indonesia Presidency.

BI Governor Perry Warjiyo said the G20 Sustainable Finance Working Group had collaborated with each other with a focus on developing the Sustainable Finance Instrument (SFI), including overcoming various challenges in its implementation, to support a green and sustainable economy.

"Joint collaboration between the government and authorities is seen as important to continue to be improved to build an ecosystem to maintain the continuity of SFI in the market in the long term," he said during a series of G20 meetings in Jakarta this week, Friday, February 18.

According to Perry, there are three strategies carried out by Bank Indonesia to achieve the Sustainable Finance Instrument's objectives. First, the importance of developing green financial instruments and investments to promote sustainable and inclusive economic growth.

"This can be a source of new growth, expansion of the workforce and support the achievement of the Paris Agreement 2030," he said.

Second is the importance of building an ecosystem of sustainable financial instruments. He said, this can be realized through the support of all relevant parties through incentive and disincentive policies, building a resilient infrastructure, including other important elements such as green taxonomy, verification services, green certification bodies, and providers of green ratings.

And thirdly, capacity building programs and ongoing technical assistance are important in increasing the understanding and expertise of all parties.

"The success of SFI development will be determined by the resilience of collaboration, togetherness, and mutual support among all stakeholders," concluded BI Governor Perry Warjiyo.