Fathan Qorib, Andin Aditya Rahman
Bank Indonesia (BI) is currently drafting a regulation on green banking. Irwan Lubis, Executive Director of the Banking Research and Regulation Department at BI, explained that such drafting requires careful in-depth research, which is why the process takes a significant amount of time
“Indeed the process of drafting a BI regulation always necessitates research. We look for sufficient references and analyses,” stated Irwan during a seminar in Jakarta on Wednesday about the role of the banking sector in developing the green economy.
Essentially, continued Irwan, the regulation aims to assist the development of banks that pay attention to the environment. If it is deemed necessary, an environmental surveyor will be designated to each bank to decide credit grants based on environmental considerations..
“This cannot be implemented without supervision,” he stated.
During the same event, Imam Hendargo Abu Ismoyo, Deputy Minister of Environmental Affairs, affirmed that debtors that disregard the environment in their business activities should not be financed by banks.
A similar concept to green banking has been operated by the Minister of Environmental Affairs since 1992 known as the environmental soft loans program. To date, IDR 407.7 billion has been disbursed to 96 businesses of all sizes.
In implementing this program, the Ministry of Environmental Affairs has partnered with six banks, namely Bank Danamon, Bank Lippo, Bank Mandiri, Bank Central Asia, Bank Negara Indonesia, and Bank Internasional Indonesia.
“Annually, the revolving fund amounts to around IDR 38 billion,” added Imam.
(hot/kc)
Fathan Qorib, Andin Aditya Rahman
Bank Indonesia (BI) is currently drafting a regulation on green banking. Irwan Lubis, Executive Director of the Banking Research and Regulation Department at BI, explained that such drafting requires careful in-depth research, which is why the process takes a significant amount of time
“Indeed the process of drafting a BI regulation always necessitates research. We look for sufficient references and analyses,” stated Irwan during a seminar in Jakarta on Wednesday about the role of the banking sector in developing the green economy.
Essentially, continued Irwan, the regulation aims to assist the development of banks that pay attention to the environment. If it is deemed necessary, an environmental surveyor will be designated to each bank to decide credit grants based on environmental considerations..
“This cannot be implemented without supervision,” he stated.
During the same event, Imam Hendargo Abu Ismoyo, Deputy Minister of Environmental Affairs, affirmed that debtors that disregard the environment in their business activities should not be financed by banks.
A similar concept to green banking has been operated by the Minister of Environmental Affairs since 1992 known as the environmental soft loans program. To date, IDR 407.7 billion has been disbursed to 96 businesses of all sizes.
In implementing this program, the Ministry of Environmental Affairs has partnered with six banks, namely Bank Danamon, Bank Lippo, Bank Mandiri, Bank Central Asia, Bank Negara Indonesia, and Bank Internasional Indonesia.
“Annually, the revolving fund amounts to around IDR 38 billion,” added Imam.
(hot/kc)