BI Develops Green MSME Business Models For The Capai Of Sustainable Development

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA Bank Indonesia (BI) together with the Bogor Agricultural University (IPB) are said to continue to develop a Green MSME Development Business Model Study.

This step is a real effort in preparing MSMEs to transform towards a sustainable economy.

BI Deputy Governor Doni Primanto Joewono said this study was a reference for recommendations and references for various stakeholders in policy making and implementing the Green MSME development program.

Green MSMEs are an initiative in the framework of Bank Indonesia's Green Economic and Financial Policy. These green transformation efforts and processes are implemented both in terms of policies and institutions," he said in a press statement quoted on Tuesday, December 13.

According to Doni, the central bank encourages the creation of environmental-minded financing (green financing) through the issuance of a green loan to value (LTV)/financing to value (FTV) ratio regulation, Green Macroprudential Inclusive Financing Ratio (RPIM), and developing green money market instruments.

"Bank Indonesia continues its transformation from the aspects of governance, risk management, strategy and performance of green indicators. This shows our commitment to overseeing the green transformation from all aspects so that it can also become a best practice institution as well as a green central bank," he said.

Doni hopes that the synergy established with IPB can continue to be disseminated and replicate the broad Green MSME business model.

"This forum is also to align policies and initiatives of stakeholders to realize Green MSMEs as a new force for the Indonesian economy is increasingly real," he concluded.