OJK: Regional And Global Banks Ready To Retire Fossil Energy

Illustration. (Photo: Doc. Antara)

JAKARTA - The Financial Services Authority (OJK) has received many willingnesss and readiness of various regional and international banks, as well as financial institutions to support the financing of early retirement projects and programs to gradually remove fossil energy. Such readiness is a development of Indonesia's feedback on the ASEAN Taxonomy submitted by the OJK with the Ministry of Finance (Kemenkeu) in coordination with related ministries/agencies in meetings of the ASEAN Taxonomy Council. "OJK actively conveys the opinion of how important it is to support the energy transition gradually," said OJK Board of Commissioners Mahendra Siregar at a press conference on Financing Transition in ASEAN in Badung Regency, Bali, quoted from Antara, Friday 31 March. According to him, the readiness of banks and financial institutions is also in line with Indonesia's plan to implement a carbon trade exchange. In the second half of this year, preparations related to technical regulations and the Indonesian market are running well to see the implementation of carbon trading will be realized on time. As a potentially largest country that can contribute to efforts to save world carbon, Indonesia is committed to doing its best to realize trade in the near future. The second version of ASEAN taxonomy specifically highlights the importance of social aspects in the framework. In the course of a net commitment of zero Indonesian emissions, it is important to balance aspects of the environment, economy, and social, as reflected in the importance of achieving the United Nations Sustainable Development Goal (PBB).

The issuance of the second version of the ASEAN Taxonomy, said Mahendra, is a significant achievement for ASEAN's sustainable financial development. "With that progress, we invite all ASEAN member countries to support this taxonomy, encourage, and refer to the development and updating of their respective national taxonomy," he said. He hopes that ASEAN's Taxonomy can attract many local and international investments to ASEAN to support sustainable development in the region. This is one of the priorities of ASEAN Indonesia's Chairmanship. Indonesia and ASEAN need to be an example in how to translate commitments and statements about sustainable finance and climate into concrete actions, real projects, and real benefits for society, the environment, as well as business.