ResponsiBank Indonesia Coalition Holds Hearing with OJK Regarding Updating Indonesian Taxonomy

ResponsiBank Indonesia Coalition together with the Financial Services Authority (OJK) shortly after the hearing regarding the update of the Indonesian Taxonomy, in Jakarta, on Wednesday (15/11). 

Jakarta, The PRAKARSA - The ResponsiBank Indonesia Coalition held an audience with the Financial Services Authority (OJK) to discuss updating the Indonesian Taxonomy at the OJK Office, Radius Prawiro Tower, BI Office Complex, Jakarta, on Wednesday (15/11). 

On this occasion, the coalition members who attended included Herni Ramdlaningrum Program Manager PRAKARSA, Dwi Rahayu Ningrum Sustainable Development Officer PRAKARSA, Linda Rosalina Executive Director of TuK Indonesia, Agung Budiono acting Director of Indonesia CERAH, Dwi Sawung Manager of Infrastructure and Spatial Planning WALHI, Pius Ginting Coordinator of AEER, Muhammad Aulia Green Finance Researcher AEER, and Dia Mawesti Sustainable Finance Lead Oxfam Indonesia met directly with Jarot Suroyo as Deputy Director of Sustainable Finance DSKT OJK accompanied by DSKT OJK Analysts Amanda and Budiman Eka. 

Opening this meeting, Herni Ramdlaningrum appreciated the OJK for taking the initiative in updating the Green Taxonomy to a Sustainable Taxonomy as well as opening space for civil society to provide input and hoped that meetings like this could be held regularly in the future.  

According to Dwi Rahayu Ningrum, this update is important, especially to ensure the inclusion of criteria for social aspects and sustainable taxonomy with more detailed information. Dwi conveyed that several elements in the bank ranking theme carried out by ResponsiBank could be complementary and could be integrated into social aspect criteria, such as human rights, gender equality and workers' rights. "The Green Taxonomy also needs to clarify social goals, such as respect for human rights, workers' rights and the rights of indigenous peoples, gender equality and social protection," he said. 

Apart from that, Dwi also added the importance of including international standards that are used as indicators to meet green criteria, not just national regulations.

Meanwhile WALHI Infrastructure and Spatial Planning Manager, Dwi Sawung, highlighted the complaint mechanism (grievance mechanisms) which are arranged in a taxonomy. “How can complaints be submitted, whether to the company or to a financial institution. "WALHI received many complaints from the public that there was no complaint mechanism that could be used to resolve problems and negative impacts experienced due to project development," he explained. 

In line with this, Agung Budiono plt. The Director of Indonesia CERAH emphasized the importance of the taxonomy in encouraging the implementation of Environmental Social and Governance (LST) principles to accommodate complaints from the public. 

According to Herni, so far ResponsiBank Indonesia has encountered many complaints from the public due to irresponsible financing practices. “There needs to be guidance how banking has grievance mechanisms, "he said. 

Responding to this, Jarot Suroyo, Deputy Director of Sustainable Finance at DSKT OJK, explained that OJK is currently principle representative Dalam ASEAN Taxonomy Board for social aspect criteria. "There we also discussed what the social pillars are in the ASEAN Taxonomy, then we also discussed how technical screening criteria for financing real estate market, generation and transportation," he explained. 

Apart from that, social concepts that already exist in the ASEAN Taxonomy include human rights, community engagementand workforce. But there are those too pipeline other social like poverty alleviationand gender equality. “Indonesian taxonomy in general align with the ASEAN Taxonomy. "This social aspect will be increasingly updated as time goes by," said Jarot. 

Jarot also said that Taxonomy in the future will be embedded to the entities and categories used in the taxonomy are no longer used traffic lights, but non-eligible, transition, and green. "Using the ASEAN plus-plus concept," he added. 

Amanda, DSKT OJK analyst, added that in preparing the taxonomy, social objectives were included defined and it's in essential criteria. Like poverty currently it has been harmonized in the third aspect. "Companies must have programs to empower local communities to eradicate poverty," he said. 

Meanwhile on aspects gender equality, Amanda explained that it has not been defined as a specific indicator, but this taxonomy document has included aspects of non-discrimination, protection of women and child workers which are considered to have addressed the issue of gender equality. 

Finally, Amanda appreciated the input from the ResponsiBank Coalition regarding the use of international standards in the Taxonomy. "Input for using international standards is very good, please provide this input in writing and convey what standards need to be adopted," he concluded. 

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