OJK Optimistic ASEAN Becomes An Inclusive And Sustainable Economic Zone

Illustration of OJK (Photo: Doc. Antara)

JAKARTA - The Financial Services Authority (OJK) is optimistic that ASEAN can become an economic zone with fast, inclusive, and sustainable growth.

Chief Executive of the Capital Market Supervisory, Derivative Finance and OJK Carbon Exchange Inarno Djajadi said, near 2030, Indonesia must be able to realize the national commitment of the NDC (Nationally Determined Contributions) in reducing the Greenhouse Gas (Greenhouse Gas) gas emissions, achieving the NDC target towards net zero emissions, and the main key is the transition to low carbon economy.

"Especially in the 6 priority sectors prioritized in the ASEAN Taxonomy Version 1," said Inarno quoting a written statement, Thursday, March 23.

Furthermore, Inarno believes that ACMF as a group of Capital Market regulators can contribute to the transition process to a low-carbon economy, because this process requires infrastructure, technology, and financing.

ACMF will also strengthen its role to support the transition to low-carbon economy by developing transitional guidelines that will guide the company so that the transition process is transparent and credible. In addition, today's meeting also discussed the development of Voluntary Carbon Market (VCM) guidelines that focus on disclosure aspects and their transitions.

"For these two important topics, VCM's transitional guidelines and guidelines, we ask for support from all members to ensure that the targets set can be achieved," said Inarno.

ACMF will continue to strengthen collaboration with the ISSB (International Sustainability Standards Board) in encouraging corporate sustainability disclosure, building awareness, improving technical competence, and increasing knowledge transfer.

In utilizing the formal ACMF-ISSB collaboration, there is a capacity building program for regulators and preparation for sustainability reporting that is ACMF's priority, before the publication and implementation of the ISSB standard.

This year ACMF is also looking forward to the launch of the Sustainable Finance Knowledge Hub, the ASEAN Green Lane and the publication of the Revised ACGS Revision (ASEAN Corporate Governance Scorecard) which combines sustainability elements to align with the revised OECD Principles.

Based on data from the ASEAN Green, Social, and Sustainability Bond Standards introduced in 2017 and 2018, as of March 15, 2023, bonds/green, social, or sustainable bonds labeled ASEAN have been issued with a value of 38.06 billion US dollars.

The discussion at the meeting also emphasized the importance of the function of ACMF's digital asset control network in response to the increasing role of digital assets in financial and trade markets, as well as protecting investors from harmful practices due to inadequate regulation and supervision.

ACMF was formed in 2004 under the forum of the Minister of Finance of ASEAN consisting of 10 ASEAN member countries namely Brunei Darussalam Central Bank (BDCB), Securities and Exchange Regulators of Cambodia (SERC), Indonesia Financial Services Authority (OJK), Lao Securities Commission Office (Lao SCO), Securities Commission of Malaysia (SCM), Securities and Exchange Commission of Myanmar (SEC Myanmar), Securities and Exchange Commission of Philippines (SEC Philippines), Monetary Authority of Singapore (MAS), Securities and Exchange Commission of Thailand (SEC Thailand), and State Securities Commission of Vietnam (SSC Vietnam).

ACMF's goal is 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.