In response to the dynamics and development of national and international sustainable finance as well as answering various challenges in handling and financing climate change, implementing the transition to net zero emission (NZE) and efforts to achieve the Sustainable Development Goals (SDGs), OJK issued the Taxonomy for Indonesian Sustainable Finance (TKBI), which is a transformation of the Indonesian Green Taxonomy Edition 1.0. TKBI is a classification of economic activities that support efforts and SDGs covering economic, environmental and social aspects, and is used as a guide to improve capital allocation and sustainable financing to support the achievement of Indonesia's NZE targets by 2060 or earlier.

The Indonesian Financial Services Authority (OJK) continues to provide extensive support for the development of sustainable finance in Indonesia, including the Climate Risk Management & Scenario Analysis (CRMS) Guidelines as a form of OJK policy support for climate change risk management. The CRMS is an integrated framework covering governance, strategy, risk management and disclosure to assess the resilience of banks' business models and strategies to climate change in the short, medium and long term.

In order to realize the Net Zero Emission commitment, FSIs are expected to contribute to the transition to a low carbon economy. This commitment can be initiated by improving the bank's ability to identify climate change risks and opportunities and avoid greenwashing practices by both the bank and its stakeholders. This guideline has been prepared for the initial phase of Climate Risk Stress Testing (CRST) 2023 on a bottom-up basis for banks included in OJK's Climate Related Financial Risk Task Force.

Sustainability has become one of the main considerations in any financial sectors’ financing/investment. However, a convergence of understanding on terminologies is needed for the market players and a wider range of stakeholders. One of the objectives of sustainable finance policies is to ensure that all FSS and stakeholders are using a common vocabulary regarding sustainable finance. This also serves as a contribution to other ongoing efforts within the FSS in developing key terms and definitions in sustainable finance.

ASEAN Taxonomy for Sustainable Finance version 2 (ATSF v2) contains the completion of the Foundation Framework which contains a detailed methodology consisting of decision trees and guiding questions for all environmental objectives (EO) and essential criteria (EC) to assess an economic activity , as well as equipped with various use cases of taxonomy usage. ATSF v2 also includes a Plus Standard with the development of the Technical Screening Criteria (TSC) for the first focus sector, namely the energy sector. Plus Standard classifies an activity as Green, Amber Tier 2 and Amber Tier 3. The Green tier is aligned with other international taxonomies and refers to the Paris Agreement target (1.5 degrees Celsius). Meanwhile, Amber Tier 2 and…

The ASEAN Taxonomy Version 3 introduces TSC for two more focal sectors namely Transportation and Warehousing and Construction and Real Estate. These new focus sectors cover activities such as building construction and renovation, demolition and site preparation, and building acquisition and ownership, as well as urban transportation and freight, and infrastructure for land, water and air transport. This ASEAN Version 3 will provide greater clarity for users of the ASEAN Taxonomy. Furthermore, in line with ASEAN's aspiration to facilitate a fair and orderly transition, the ASEAN Taxonomy will be continuously reviewed and updated in line with evolving technological, scientific, and economic developments. Following this release, ATB will…