Indonesia’s financial regulator has set up a sustainable finance task force to further develop the country’s sustainable finance ecosystem under a five-year roadmap.
The Financial Services Authority, known by its local acronym OJK, says the task force comprises 47 representatives from the financial and capital markets, including the stock exchange, social security agencies and pension funds. It comprises a steering team and an implementation team.
“The task force aims to be a platform to coordinate the financial industry in developing a sustainable finance ecosystem in Indonesia,” OJK Chairman Wimboh Santoso says in a statement on October 8.
The move is part of Indonesia’s Sustainable Finance Roadmap 2021-2025, a blueprint launched at the beginning of the year aimed at strengthening resilience and competitiveness of the financial services sector.
Indonesia has been pushing ahead to develop sustainable finance. The OJK pointed out the country last year issued US$5.5 billion of sustainable bonds, around 43% of the total $12.8 billion of sustainable bonds issued by Southeast Asian countries.
Other regulators in the region have also been taking steps to bolster sustainable finance and environmental, social and governance practices.
Most recently, the Thai government and the United Nations on September 30 jointly launched an initiative called Sustainable Thailand 2021 to boost awareness among institutional investors and banks to conduct their business in line with the UN’s Sustainable Development Goals.
In Malaysia, the securities regulator said last month that its new five-year capital market masterplan will, among other things, focus on asset managers’ practices on the use of sustainability-related factors in investment decision processes, transparency of ESG data providers, as well as disclosures and governance among credit and ESG ratings agencies.
In Singapore, the central bank last year launched a Green Finance Action Plan to turn the city state into a “leading centre for green finance in Asia and globally”. This June, it appointed five asset managers for $1.8 billion of new equity and bond mandates focused on climate change. The allocation comes from its foreign reserves.