OJK to supports green financing in Indonesia

REPUBLIKA.CO.ID, JAKARTA - The Financial Services Authority (OJK) plans to support the development of green financing in Indonesia. They will push financial institutions to fund economic sectors which environmentally friendly.

"We push banking industry to support green financing," Chairman of OJK Muliaman D Haddad said in international seminar 'Green Energy with Green Financing' in Jakarta on Sunday. 

All stake holders in industry sector including regulators and expert, need more dialogue to sharpen their focus, especially in finance sector.Today, lacking of knowledge in green economy causes less financial institutions to finance green financing. 

Only a small number of banks funded microginance sector, for instance hydrofinancing in Sumatra. Haddad added, the key to finance green development is how banks manage the risk. Unless they will get some profits, the bank will refuse to open capital access to green financing.

Now, government is still facing problem to educate banks in Indonesa about the benefits of green finance. "We would continue what has been pioneered by Bank Indonesia in order to gain success in green financing," he said.