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IFC Cements Partnership with Indonesia's Financial Services Authority (OJK) to Advance Global Sustainable Finance

June 03,2019

On April 19th, Indonesia’s Financial Services Authority, Otoritas Jasa Keuangan (OJK), signed a Memorandum of Understanding (MOU) with the International Finance Corporation (IFC) affirming its continued partnership in environmental and social risk management and sustainable financing practices for the Indonesian financial sector. The MoU highlights OJK and IFC’s innovative partnership and signals IFC’s continued support to Indonesia to advance sustainable finance in Indonesia, as well as regionally and globally through SBN.

MoU+signing+IFC-OJK.jpgIn July 2017, OJK released a sustainable finance regulation to provide guidance to “green” the entire financial system, including banking, capital markets, insurance, leasing, and pension funds. IFC will assist OJK with the first phase of implementation of this regulation. OJK’s collaboration with IFC began in 2012, when OJK became a founding member of the IFC-supported Sustainable Banking Network (SBN). Since then, OJK has taken an active role in the SBN community as a co-chair of SBN’s Measurement Working Group and founding member of the newly-formed SBN Green Bond Working Group, which seeks to advance green bond issuance among the collective community of SBN. Indonesia was recognized by SBN’s flagship Global Progress Report as one of eight most advanced countries in terms of sustainable finance development, having implemented large-scale reforms and put in place systems for results measurement.