The Financial Services Authority (OJK) has published the Banking Sustainability Maturity Assessment Report (SMART) 2025 as part of its efforts to strengthen the implementation of sustainable finance in the banking sector. The report aims to enhance the readiness of Indonesia’s banking industry in integrating Environmental, Social, and Governance (ESG) considerations into their strategies and business models.

SMART 2025 maps the maturity level of sustainability practices across the Indonesian banking industry, covering areas such as governance, strategy, risk management, sustainable financing, disclosure practices, and internal capacity building. The findings indicate that the banking sector has made progress in strengthening sustainability commitments and governance. However, further efforts are still required, particularly in integrating climate and sustainability risks into core risk management and aligning business strategies with the transition toward Indonesia’s Net Zero Emissions target by 2060.

Going forward, OJK will continue to encourage stronger implementation of sustainable finance through regulatory enhancements, risk-based supervision, and capacity building for the banking industry.

Further information on the Banking Sustainability Maturity Assessment Report (SMART) 2025 can be accessed through the following link.