Presentation from Ahmad Rifqi - OJK
OECD Stakeholder dialogue: Mobilising Clean Energy Finance and Investment
Joint OECD-Government of Indonesia (GoI) Workshop at the Indo EBTKE Conex 2019, 8 November, Jakarta
PPT Ahmad Rifqi -OECD Stakeholder Dialogue on Mobilising Clean Energy Finance and Investment, 8 November 2019
SUSTAINABLE FINANCE NEEDS SUSTAINABLE FINANCE
Sustainable Development is development that meets
the needs of the present without compromising the
ability of future generations to meet their own needs.“
(Brundtland Report, Our Common Future, 1987)
Climate finance refers to local, national or
transnational financing—drawn from public, private
and alternative sources of financing—that seeks to
support mitigation and adaptation actions that will
address climate change. ... Such mobilization of climate
finance should represent a progression beyond
previous efforts. (UNFCCC)
Sustainable finance in Indonesia is defined as
comprehensive support from the financial service
industry to achieve sustainable development resulted
from a harmonious relationship between economic,
social and environmental interests (SF Roadmap 2015-
No one left behind
INDONESIA SUSTAINABLE FINANCE JOURNEY
OJK Issued SF
1. OJK SF Award
2. First Movers
3. GoI ratified
1. OJK SF
2. OJK Green
3. GoI adopt
1. 1st Green
2. OJK SF
1. 1st SF action
plan by banks
2. OJK SF
Phase II 2020-
4. OJK SF
2015-2018 implementation of OJK SF Roadmap2015-2018 implementation of OJK SF Roadmap
50 batches training program for 1000 SF officers50 batches training program for 1000 SF officers
8 banks as first movers8 banks as first movers
2 banks, 1 NBFIs issued green bonds about USD 669 M2 banks, 1 NBFIs issued green bonds about USD 669 M
USD 2,4 B blended finance commitment for SDGsUSD 2,4 B blended finance commitment for SDGs
How could we close the funding gap, mobilize the capital, and increase investors’ participation?
OJK’S ENDEAVOUR TOWARDS SUSTAINABLE FINANCE
• 80% commercial
banks has submitted
• Increasing portfolio
to finance sustainability
projects: green buildings,
energy, organic farming,
• Green insurance
• Encourage leasing and
finance companies to
for organic farmers,
fishermen, and MSMEs.
• Set up microfinance
institutions (with Islamic
boarding schools all over
Indonesia) that provide
loans to environment-
• Listed companies shall submit action plans
on the implementation of sustainable
finance principles by end of this year,
followed by securities companies in 2 years.
• Regulations that support the issuance of
sustanability bonds and green sukuk.
ISFI is a forum for cooperation among financial institutions in the field of sustainable finance.
The existence of ISFI is increasingly complementing the ecosystem of sustainable finance
The program of sustainable finance on Banks, Capital Market and Non Bank Financial Institutions
BANKS Capital Market NBFI
BANKING CAPITAL MARKET NON BANK FINANCIAL
syndicated loan or
that uses Green Climate
Fund such as green
IPO (sustainability bond,
green bond/sukuk, etc)
Sustainability bond –
pension fund, green
financing to environt-
Microfinance: financing for
Insurance: insurance for
climate risk insurance, etc.
SUSTAINABLE FINANCE PRODUCTS
G r e e n
b o n d s
INDONESIA’S GREEN FINANCE COMPOSITION
Assist in mitigating early-entrant costs or project risks and helping re-balance risk-reward profiles for pioneering investments
US$9,45 billion or IDR132,7 trillion
US$ 669 million or IDR9,5 trillion
US$3,2 billion or IDR45 trillion
• PT. Sarana Multi Infrastruktur (PT SMI) for amount US$35
milion or IDR500 billion in 2018
• OCBC NISP for amount US$ 134 million or IDR2 trillion in
• PT. BRI for amount US$500 million or IDR7 trillion in 2019
Global Green Bonds
US$ 180 Billion
BLENDED FINANCE An Attractive Source of Financing for Indonesia’s Infrastructure Development
9 PROJECTS IN PROGRESS (2019)6 PROJECTS HAVE BEEN DONE IN 2018
16projects are being prepared/drafted.
1. SDG Indonesia One. Blended finance platform by
2. Green Climate Funds. Blended finance platform by BKF
Kemenkeu (for amount USD 10,3 Billion).
3. Global Environment Facilities. Blended finance platform
by KLHK (focusing on sustainable land use, for amount
USD 4,1 Billion).
4. Utility Scale Solar PV Plants for amount USD 160
5. Gringgo, saving marine program from plastic waste.
6. Proyek Pembangunan Tsinghua Southeast Asia Center
corporated with Tsinghua University Tiongkok and UID.
7. Anti Stunting Program, for amount USD 10 M from
Asian Philanthropists, CSR company FeelWell Ceramics.
8. Sustainable Finance roadmap update (OJK).
9. Tri Hita Karana Roadmap for Blended Finance.
1. Cargill, CPO companies are committed on USD 6-10M
loan disbursement for ecosystem restoration,
conservation and community forest projects.
2. Geothermal Energy Upstream Development Project,
by PT SMI with USD 65 M grants from World Bank, co
financing PT SMI USD 49 M, 5 years revolving.
3. Jambi Micro Hydro Power Project, cooperated with
UNDP, Baznas, Bank Jambi (CSR funds) for amount
4. Starbucks Greener Nusantara. Starbucks is committed
for not using plastics.
5. Tri Hita Karana for Clean Bali. Traditional power
structure and laws to change behaviour and reduce
6. Billion Dollar Fund for Women Campaign. Investing in
women across all sectors from food to financial services.
1. Proyek National Multifunction Satellite for Telecommunication. For amount USD 583.3 M.
2. Belantara Ecotourism Project in South Sumatera.
2 PROJECTS WILL BE STARTED IN 2019
SUSTAINABLE FINANCE ACCELERATION STRATEGY
OJK is committed to establishing an effective regulatory environment to encourage the development of sustainable financing for the achievement of the SDGs.
Independent assessor that are
qualified to assess green projects.
Strategic national policies and leadership role.
Adequate level of literacy –on the part of investors, issuers and
regulators— on issues related to environment and the Sustainable
Development Goals, including particular issues such as green
Availability of experts in the sustainable
development and sustainable finance.
Clear global standards in green financing.
Scaled-up coordination efforts among Government agencies,
domestic and international organizations as well as private sector.