PERBANAS Committed to a Green Financial Transformation in Indonesia

24 July 2023

The Association of National Banks (Perbanas) is committed to a green financial transformation in Indonesia, with a focus on sustainable finance. The bank's chairman, Kartika Wirjoatmodjo, emphasized the importance of sustainable finance in supporting economic growth and aligning economic, social, and environmental interests. Perbanas' 71st anniversary celebration included a national general meeting of members (RUA) and a panel dialogue on Indonesia Economic Transformation to Worlds a Nature Positive Future.

The government is also focusing on providing quality and affordable education to prevent the country from being trapped by the middle class. Coordinating Minister Luhut highlighted the strategic role of sustainable finance in supporting economic growth and emphasized the importance of comprehensive support from the financial services sector in driving the real sector.

The Indonesian government has been committed to reducing greenhouse gas emissions by 31.9% in 2030 and Net Zero Emissions (NZE) in 2060. Banking must become the driving force for Indonesia's economic transformation, reducing carbon emissions through the alignment of financing strategies and credit portfolios, as per the Indonesian Green Taxonomy (THI).

Perbanas appreciates its members encouraging companies or debtors engaged in energy extraction, such as mining and petroleum, to take steps towards energy transition initiatives through green financing facilities and sustainability loan facilities. The bank must also support the development of the electric vehicle industry, which aims to reduce carbon emissions.

Perbanas, as a national banking forum, is committed to strengthening and improving regulations related to post-covid policies, taxation, and IT security. The banking industry must also show alignment and social responsibility in providing access to finance for MSME players and the lower middle class, aiming to increase financial literacy and inclusion to reduce social and economic disparities.

Perbanas welcomes the government's invitation and input from various parties to participate in building the country's economy in a sustainable manner while upholding national interests. It understands that every nation has different challenges and requires policy solutions that are contextual, aligned with domestic challenges, and always aligned with the nation's interests.