OJK Extends Implementation of ?Green Banking?

 
Fathan Qorib, Robert Sidauruk
 
In an effort to enhance the role of financial service institutions in contributing to the preservation and protection of the environment, the Financial Services Authority (OJK) and the Ministry of Environmental Affairs (Ministry) have agreed to work together under a cooperation agreement.
 
Details of the cooperation have been set out in a memorandum of understanding, emphasizing that the OJK agrees to extend the implementation of “green banking” to all financial service sectors not only the banking sector.
 
In his speech at the MoU signing ceremony, Balthasar Kambuaya, the Minister of Environmental Affairs, said that the cooperation will encourage eco-friendly endeavours as mandated by the Environmental Law.
 
The Minister sees that the OJK has a strategic role to play in the implementation of this initiative through applying eco-friendly policies in the granting of loans and for financing projects.
 
“We [Ministry] will support the implementation of eco-friendly policies in the financial sector,” said Mr. Kambuaya in Jakarta on Monday.
 
OJK Chairman, Muliaman D Hadad, informed that the MoU is a follow up to a similar agreement between the Ministry and Bank Indonesia (BI) in 2010. Approximately 200 bankers throughout Indonesia have been trained in environmental issues since the agreement was made.
 
In addition, the agreement between the Ministry and BI has also stimulated significant participation by the banking sector in eco-friendly projects. For example, Indonesian banks have participated in the financing of many eco-friendly projects, including projects for renewable energy (biodiesel and bioenergy), organic agriculture, green industries, and eco-tourism, amounting to IDR 15.5 trillion.
 
In regard to the MoU itself, Mr. Muliaman explained it focuses on several aspects related to the initiative. The first is policy harmonization between the financial service sectors and the environmental sector. The second is assuring the supply of environment related information for the development of sustainable financial services.
 
The third element is research and data collection to support the drafting of policy for sustainable financial services. The final focus is improving the capacity and competency of human resources in the financial services sector so that they can better understand environmental protection and management.
 
“Financial service institutions play an important role in protecting the environment,” concluded Mr. Muliaman.
 
(hot/kc)