These Are The Five OJK Contributions To Support Sustainable Green Development

Chairman of the Board of Commissioners of the Financial Services Authority (OJK) Mahendra Siregar. (Photo: Doc. ANTARA)

Chairman of the Board of Commissioners of the Financial Services Authority (OJK) Mahendra Siregar stated that the commitment to always present the latest developments is not only to overcome the problems that are present, but to ensure long-term economic sustainability.

According to him, more efforts are needed to overcome the big challenges of climate change and achieve long-term development goals or sustainable development goals (SDG).

"For example, the palm oil industry in Indonesia continues to look for ways to increase production. This will not only have an impact on improving the community's economy but also on how we ensure land availability," he said at The 1st OJK International Research Forum 2023 in Jakarta, Monday, September 25.

Mahendra explained that innovation must be in line with better financing. This financing target can encourage sustainable economic achievements without neglecting existing social aspects.

"OJK agrees with the commitment of the Indonesian government to support the agreement of the Paris Agreement and SDG released by the United Nations. We have several instruments to realize this," he said.

First, continued Mahendra, since 2015 the OJK has compiled a roadmap for sustainable financing which further confirms green financing.

"This is what then builds a sustainable financing ecosystem in Indonesia," he said.

Second, at the end of last semester was launched by the National Green Taxonomy which was used as a comprehensive reference in line with the ASEAN Taxonomy and also the global Taxonomy. "We believe the Green Taxonomy can increase financing capacity and promote financial implementation in line with sustainable development," he stressed.

The third is business matching and expansion of the work network.

Mahendra revealed that if the procurement of open forums is very important to bring together project owners and potential financing institutions.

"Four, OJK supports the issuance of green debt securities oriented to the electric vehicle ecosystem," he added.

Five, OJK has compiled a framework for realizing carbon trading so that it can encourage emission reduction.