ResponsiBank Indonesia Highlights the Discussion of the PPSK Bill for Strengthening Sustainable Finance

The PRAKARSA – Response Bank Indonesia sees the importance of incorporating sustainable finance principles or sustainable finance Dalam Financial Sector Development and Strengthening Bill (RUU PPSK), which is currently being discussed by the government and the DPR. This was conveyed in a consolidation event between coalition members to strengthen the commitment to advance sustainable finance in Indonesia. Located at DoubleTree by Hilton Hotel Jakarta, on Friday (25/11/2022). 

Apart from coalition members Response Bank Indonesia, was also present at this event the Coalition Clean Indonesia and the Coalition Forests and Finance as a coalition partner which so far has also focused on issues sustainable finance in Indonesia. It is also hoped that this meeting will be able to produce program or activity proposals that will serve as a guide for the coalition to strengthen its role and contribution in Indonesia. 

Coalition Coordinator Response Bank Indonesia as well as Executive Director The PRAKARSA, Ah Maftuchan, on this occasion expressed the need to strengthen the various achievements that have been produced so far. In addition to the coalition's role in strengthening relations with regulators, according to him, it is also important for civil society organizations to strengthen engagement on the consumer and financial industry players. 

"Coalition achievements ResponseBank to contribute to the advancement of regulations or related rules sustainable financece we need to continue and we need to complement it with another approach, so that it is different engagement with the regulator we can also increase the gain engagement us with consumers as well as the financial industry itself," said Maftuchan. 

Apart from that, Maftuchan also said that after the issuance of the document green taxonomy 1.0 by OJK then gave birth to its own dynamics. There are those who call this a step forward, but there are also some who respond with concern and propose a revision. 

"For this development, we need to follow it together, don't let it green taxonomy which is already advanced and quite good, even though it is not perfect from our point of view, it will be set back. Well, this is what we need to anticipate together. On the other hand, the existence of the ASEAN green taxonomy is also a good step at the regional level how business activities or economic activities can use it as a guide so that online with all of our commitments in achieving emission reduction targets and in protecting the biodiversity on this earth," said Maftuchan. 

Furthermore, on this occasion Maftuchan also highlighted the steps the government and the DPR are currently discussing PPSK Bill. He said, the birth of the bill must be able to strengthen principles sustainable finance

"I propose, we put the discussion PPSK Bill this is one of the priorities that we need to work on together, maybe we don't have to wait until next year but after this we can also start working on it. Because this position is very important,PPSK Bill) is projected as omnibus law financial sector and this is also an opportunity for us to strengthen aspects of sustainable finance, protect biodiversity, protect forests and strengthen economic activities that are greener, more environmentally friendly, in order to get stronger regulation in this bill," explained Maftuchan. 

Maftuchan also explained the importance of developing an investment guidebook for the extractive sector, as previously contributed, namely compiling a guidebook for investment in the palm oil sector that had been issued by the OJK. "In my opinion, the extractive sector is one of the sectors that is very crucial to exist manual book-at the OJK," he concluded.

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