Indonesia’s OJK Casts Low-Carbon Transition as Economic Opportunity, Sets Out Four-Pillar Strategy

Indonesia’s financial-sector regulator has reframed the shift to a low-carbon economy as a strategic economic opening, arguing that institutions which act early will secure durable competitive advantage.

Speaking at the Maybank Indonesia Sustainable Finance Forum 2026 in Jakarta on Tuesday, OJK Chairwoman Friderica Widyasari Dewi cited a convergence of global headwinds — geopolitical tension, supply-chain disruption, climate risk, and market volatility — as evidence that short-term responses are no longer adequate. She called for structural transformation of the financial system, with the financial services sector taking a central role in mobilising capital and accelerating the transition to a sustainable economy.

To that end, OJK is organising its sustainable-finance agenda around four strategic pillars: developing Indonesia’s Sustainable Finance Taxonomy (TKBI) to provide a shared classification framework for both sustainable and transition activities, aligned with national priorities and international standards; strengthening climate-risk management through improved methodology, data development, and analytical tools; progressively aligning sustainability disclosures with internationally recognised reporting standards; and directly supporting the development of Indonesia’s carbon market ecosystem to attract green investment. Friderica called for deep collaboration among government, regulators, financial institutions, businesses, and investors, and urged industry participants to embed sustainability into core strategy and governance as a driver of innovation and resilience rather than a compliance exercise. Indonesia, as a G20 member, reaffirmed its commitment to the Paris Agreement, the Sustainable Development Goals, and a net-zero emissions target of 2060 or sooner.