THE ROLE OF PUBLIC INDONESIAN BANKING IN SUPPORTING INDONESIAN SUSTAINABLE FINANCING

• Main Author: Muhammad Irsyadillah, Razief
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/62530
• Institution: Institut Teknologi Bandung

The new 2030 Agenda for sustainable development adopted by all UN member states in 2015 provides a shared blueprint for peace and prosperity for people and the earth, now and in the future. At the heart of the blueprint are the 17 Sustainable Development Goals (SDGs), an urgent call for all countries in the global partnership. To achieve this goal, the government continues to look for effective ways to lead the country out, and sustainable finance is recommended as a mechanism to catalyze the development of updated national policies to achieve sustainable development goals. Indonesia has shown a solid commitment to the success of the SDGs. An estimated USD 81 billion is needed to fulfill Indonesia's commitment to the SDGs. Meanwhile, the government can allocate only USD 55.1 billion. Indonesia, a bank-based financial system, has enormous financial resources from the banking industry to solve these problems. Credit as one of the financial services of the banking industry can support sustainable development by providing financial capital to related industries. Given these problems, this study aims to find the obstacles in implementing sustainable finance, especially green credit programs, in Indonesia and propose a government policy as a reference to accelerate sustainable goals. This study will use the Indonesian sustainable framework as secondary data and benchmark to the UK's framework. Several previous studies related to this study will also be used to support this study. An in-depth interviews were conducted on banking institutions to obtain more details from the bank's perspective. To process the findings, the author uses qualitative method where the author uses content and thematic analysis. From this study, the author found obstacles in implementing sustainable finance are the lack of capacity of the bank in Indonesia, the regulatory framework that is not clear, and the assessment for the financing that does not include ESG risks. A regulatory framework for banking green credit management is proposed to address these obstacles that involve policies, products, human resources, and awareness. The proposed policy's period ranges from 2022 to 2025.