OJK Issues Debt-Listed Effect Rules And Sustainable Sukuk

Illustration (Photo: Doc. Antara)

JAKARTA - The Financial Services Authority (OJK) has issued Financial Services Authority Regulation (POJK) Number 18 of 2023 concerning the issuance and requirements for securities are debt and sukuk on a sustainable basis (POJK 18/2023).

The issuance of POJK 18/2023 is a follow-up to the sustainable financial roadmap to develop the capital market industry, through the development of Debt and Sukuk (EBUS) Securities, which integrates sustainability values, namely preserving a sustainable environment and social impact, and encouraging sustainable development of EBUS.

Furthermore, the issuance of POJK 18/2023 is one of the roles of the OJK in responding to global and regional ASEAN issues in the context of mitigating the impact of climate change which is also Indonesia's commitment to the Paris Agreement.

POJK 18/2023 replaces POJK number 60/POJK.04/2017 concerning the issuance and requirements for environmentally friendly debt (Green Bond) by expanding regulatory coverage in terms of types of effects, sustainable themes, and mechanisms for issuing their effects.

Thus, POJK 18/2023 is not only limited to environmentally friendly debt (green bond), but also includes environmentally friendly sukuk (green Sukuk), social bonds (sukuk), sustainable EBUS (sustainability bonds/sukuk), Sukuk Waqf (sukuk-linked waqf), and sustainable related EBUS (sustainability-linked bond).

The substance of the POJK 18/2023 arrangement, among others: