OJK Reveals Downstreaming And Important Technology Innovation In Sustainable Economic Resilience

OJK Chairman Mahendra Siregar (Photo: Maria Trisnawati/VOI)

JAKARTA - Chairman of the Board of Commissioners of the Financial Services Authority (OJK) Mahendra Siregar emphasized the importance of downstreaming and technological innovation in strengthening the resilience of a sustainable national economy.

Mahendra said downstreaming not only increases the added value of domestic resources, but also opens investment opportunities and strengthens Indonesia's competitiveness in the global market.

"This will in principle increase endurance, as well as national economic resilience. Because on the one hand it is based on the development of added value downstreaming of mineral and agricultural resources, on the other hand parties based on stakeholders, based on the financial services sector supporting it, and also multiplier activity, the effect will be more and more applicable in Indonesia," Mahendra said in his statement, quoted Thursday, November 28.

In addition, Mahendra conveyed that to achieve sustainable economic resilience, his party also supports the national commitment to achieving net zero emissions and sustainable development, among others, by issuing the Indonesian Sustainable Financial Taxonomy (TKBI).

For the first version of the taxonomy that has been published, Mahendra said the OJK focuses on the sector or energy transition and critical minerals process because critical minerals are needed for energy transition.

The next stage of the sustainable taxonomy is a version of two related to the construction, real estate, transportation and storage, and agro sectors as well as forestry and land use. "We hope that early next year it will be published," he said.

On the other hand, Mahendra said that the OJK also supports the government's efforts in its plans and desire to become a member of the Organization for Economic Cooperation and Development (OECD) and the group of BRICS countries which are the right strategic steps to strengthen the economic, financial, and investment foundation in Indonesia towards an increasingly modern and developing economy.

In the event, Deputy for Macroeconomic and Financial Coordination of the Coordinating Ministry for Economic Affairs of the Republic of Indonesia Ferry Irawan said that in order to achieve the 8 percent economic growth target set by the government, it requires the participation of the financial services industry, especially the capital market sector.

"The capital market acts as the main pillar of development financing, especially in supporting industrial downstreaming, energy transition, and strengthening the digital economy," he said.

In line with this, the Minister of Investment and Downstreaming / Head of the Investment Coordinating Board Rosan P. Roeslani conveyed the importance of investment as the key to achieving 8 percent economic growth targets.

One of the engines of growth to achieve 8 percent economic growth is investment. Efforts to support downstreaming, strengthen the capital market as a foundation for liquidity, and encourage strategic investment, including in the carbon sector, will be the main pillar to realize a sustainable vision of economic development," said Rosan.