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

1. Ahmad Rifqi
International Department
SUSTAINABLE FINANCE
Implementation

2. 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-
2019)
No one left behind
(increase private
involvement)

3. INDONESIA SUSTAINABLE FINANCE JOURNEY
2012
2013
2015
2014
2016
2017
2018
2019
OJK a
founding
member and
joining SBN
OJK
Developing
Roadmap
OJK Issued SF
Roadmap
2015-2019
OJK
1. Awareness
Programs
2. Green
lending
models
1. OJK SF Award
2. First Movers
Sustainable
Banking
3. GoI ratified
Paris
Agreement on
Climate
Change
4. BCSF
established
1. OJK SF
Umbrella
Regulation,
2. OJK Green
Bond
guidelines
3. GoI adopt
SDGs
initiative
1. 1st Green
Bond/Sukuk
issued by
Government
and Financial
Institution
2. OJK SF
guidelines for
Banking
3. ISFI
established
4. Introduction
blended
finance
scheme
1. 1st SF action
plan by banks
2. OJK SF
Monitoring
3. OJK
Developing
Roadmap
Phase II 2020-
2024
4. OJK SF
research
programs
5. Blended
Finance
6. Sustainable
Finance
Initiatives
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?

4. OJK’S ENDEAVOUR TOWARDS SUSTAINABLE FINANCE
• 80% commercial
banks has submitted
Sustainable Finance
Action Plans.
• Increasing portfolio
to finance sustainability
projects: green buildings,
ecotourism, renewable
energy, organic farming,
and sustainable
infrastructure.
• Green insurance
• Encourage leasing and
finance companies to
provide financing
for organic farmers,
fishermen, and MSMEs.
• Set up microfinance
institutions (with Islamic
boarding schools all over
Indonesia) that provide
loans to environment-
friendly businessess.
• 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
in Indonesia.
The program of sustainable finance on Banks, Capital Market and Non Bank Financial Institutions
BANKS Capital Market NBFI

5. BANKING CAPITAL MARKET NON BANK FINANCIAL
INSTITUTIONS
 Sustainability Bond
 Green Loan/Financing:
syndicated loan or
innovational financing
that uses Green Climate
Fund such as green
building, ecotourism,
renewable energy,
efficiency energy,
organic farming,
sustainable
infrastructure.
 IPO (sustainability bond,
green bond/sukuk, etc)
 Equity Crowdfunding
 Pension Fund:
Sustainability bond –
pension fund, green
investment.
 Financing Institution:
financing to environt-
friendly MSMEs.
 Microfinance: financing for
organic farmers.
 Insurance: insurance for
fishermen/farmers,
climate risk insurance, etc.
SUSTAINABLE FINANCE PRODUCTS

6. 169mio
USD
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
GREEN LOANS
US$9,45 billion or IDR132,7 trillion
GREEN BONDS
US$ 669 million or IDR9,5 trillion
GREEN SUKUK
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
2018
• PT. BRI for amount US$500 million or IDR7 trillion in 2019
Global Green Bonds
US$ 180 Billion

7. BLENDED FINANCE An Attractive Source of Financing for Indonesia’s Infrastructure Development
USD 2.46
Billion
33 Green
Projects
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
PT SMI.
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
Million.
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
Rp.8,56 Billion.
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
marine littering.
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

8. 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
financing schemes.
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.

9. Sustainable Finance Website
www.ojk.go.id/sustainable-finance
(021) 2960 0000
(021) 385 8321
humas@ojk.go.id
OJK Contact 157
THANK YOU