Overview

Indonesia ratified the Paris Agreement through the issuance of Law No. 16 of 2016 on the Ratification of the Paris Agreement to the United Nations Framework Convention on Climate Change (“Law 16/2016”), which sets out the government’s obligations regarding reductions in national greenhouse gas emissions as part of efforts aimed at limiting the overall increase in the global average temperature to the 1.5℃ - 2.0℃ range over the pre-industrial average.^[1] In this regard, the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) is supporting the government’s commitment to the Paris Agreement through efforts aimed at the development of sustainable finance, as set out under the Sustainable Finance Roadmap Phase I [2015 - 2019] (“Roadmap I”)^[2] and the Sustainable Finance Roadmap Phase II [2021 - 2025] (“Roadmap II”).^[3]