OECD Focus Group Discussion I: Transition finance in Indonesia, 21 March 2023, virtual meeting

1. Bank Syariah Indonesia
Transition Finance Implementation
Aris W Setiawan
Vice President
Sustainable Finance
PT Bank Syariah Indonesia, Tbk
21 March 2023
Focus Group Discussion OJK
1

2. Focus Group Discussion OJK
2
1. Green Finance Identification process
2. Green Finance Policy & Governance
3. Net-zero transition process of the coal mining sector
Outline

3. Focus Group Discussion
3
Green Finance Identification Process

4. 4
Green Finance
Identification Process
4
20 Mar 20
3 Banks legacy
green finance
approach
01 Feb 21
Merger of 3 Bank
Bank Syariah Indonesia
(BSI)
Mar 21
BSI used POJK
No.51/2017 regulation
to define green finance
Nov 21
RAKB & SR document
Based on POJK
No.51/2017
Agustus 22
Green
Taxonomy
Approach
>2023
Green Taxonomy
System Reporting
& Implementation
Focus Group Discussion OJK
4

5. Focus Group Discussion OJK
5
Green Finance Policy & Governance

6. 6
Green Finance Regulatory
Focus Group Discussion OJK
6
Green Finance Policy & Governance
Syariah Principles
 POJK No.51/03/2017
 People, Profit, Planet (3P’s)
 The Global Reporting Initiatives
(GRI)
 Sustainable Development Goals
(SDG)
Internal Policy
Standard Financing Procedure
Exclusion List 2023
 Illegal logging
 Addresses child labour & forced
labour.
 Fishing activities at sea using
nets with a length of more than
2.5 km
 Production or activities that are
dangerous or use explosives
Maqoshid Syariah
 HifdzAd-Din
Maintain Religion
 HifdzAn-Nafs
Maintain Souls
 HifdzAl’Aql
Maintain Mind
 Hifdz Al-Maal
Maintain Asset
 HifdzNasab
Maintain Descendant

7. Focus Group Discussion OJK
7
Net Zero Transition Process
of The Coal Mining Sector

8. 8
Discussion Group OJK
8
Net Zero Transition Process of
The Coal Mining Sector
37 client
Incl 3 client Red Classification
(Indonesian Green Taxonomy)
OS: Rp712.6 billion
(0.34% of Total Financing)
Coal Mining Sector Portfolio Implementation of transition finance
 BSI already has client with high carbon who have taken steps
towards greener practices (water pollution control, waste
management)
 Client have PROPER certificate (green & blue), which indicates
that the company is compliant in environmental management
 BSI will approach client (those who produce high carbon
emissions) with a red classification to gradually turn yellow by
intensive meeting to meet taxonomy regulation

9. Thank You
PT Bank Syariah Indonesia, Tbk
Main Office
The Tower, Jl. Gatot Subroto No. 27
Kelurahan Karet Semanggi,
Kecamatan Setiabudi,
Jakarta Selatan 12930
BSI Call - 14040

10. Transition finance is a concept whereby financial services are
provided to industries that generate high carbon emissions
- such as coal power, steel, cement, chemicals,
papermaking, aviation and construction - to fund the
transition towards decarbonization
Definition