Climate change is now not only impacting the environment but also social and economic aspects. This was conveyed by the Deputy Commissioner for Regulation, Licensing, and Quality Control of the Financial Services Authority (OJK), Deden Firman Hendarsyah, when appearing as keynote speaker at the event Sustainable Finance Fest 2026 at the Le Meridien Hotel, Jakarta, Thursday (30/4).
The event, which carries the title "Finance for Future: Giving the Green Shift a Lift"This is presented by the Responsibank Indonesia coalition in collaboration with Katadata and the Indonesian Data Talk Foundation and organized by Sisi+ by Katadata.
This event aims to increase public understanding of the importance of sustainable finance while opening up a space for inclusive dialogue between regulators, the private sector, civil society organizations, academics, and the public.
Sustainable Finance Fest 2026 also serves as a platform for building networks among green economy activists, impact investors, and communities, and encourage the active participation of various parties in the development of sustainable finance, both through green investment and policy advocacy.
"Climate change is not just an environmental risk, but has developed into an economic and financial risk that threatens stability," said Deden.
He added that the transition to sustainable finance is a collective climate risk mitigation effort involving many stakeholders. For financial industry players themselves, the transition to a more sustainable direction is inevitable.
"Steps to mitigate climate risks are no longer voluntary, but an obligation for our financial industry," Deden added.
He reminded financial industry players that the transition to a more sustainable direction needs to be carried out carefully.
According to Deden, choosing not to transition doesn't mean being risk-free—quite the opposite. The risks that arise from stagnation can be far greater and more difficult to control than the risks inherent in the change process itself.
“What is needed is courage that careful, the courage to innovate to design green (financial) products and sustainable"However, this courage must also be accompanied by caution and good governance," he added.
Furthermore, Deden invited the public to participate in driving transformation in the financial sector.
"Climate change is a multigenerational issue, and it is the younger generation that will bear the consequences the longest. Therefore, public support plays a crucial role in encouraging the financial and banking sectors to transform more rapidly," said Deden.
Deden encourages the public to become smarter investors—not just chasing returns, but also considering where their funds are channeled. He believes that every rupiah invested is a vote for a better future for people and the planet.
The OJK has issued a number of regulations that encourage business actors to apply sustainable principles in their business activities, such as POJK, the Taxonomy for Indonesian Sustainable Finance (TKBI), and the CRMS Guidelines. (Climate Risk Management and Scenario Analysis).
A Sustainable Financial Ecosystem Must Become a Necessity
On the same occasion, the Director of Sustainable Finance at the Financial Services Authority (OJK), R. Joko Siswanto, stated that the regulations issued by the OJK are designed to shift the paradigm of financial industry players—from mere compliance to awareness. In the medium to long term, the OJK aims for the implementation of sustainable principles to grow from the awareness and needs of the industry itself, not simply because of regulatory requirements.
"In the future, it will be the market or the public that will 'punish' or reward business actors for implementing these sustainable practices," he added.
From a capital market perspective, Ignatius Denny Wicaksono, Head of Development Division 2 at the Indonesia Stock Exchange (IDX), stated that the exchange plays a crucial role in connecting investors with green instruments. He believes the capital market can be a driving force for investment that supports the energy transition and sustainable development.
“Our (BEI) task is to navigate ESG investment"This is about how to encourage investors to invest in more sustainable sectors," Ignatius said. He added that, reflecting on this role, the capital market continues to implement approaches to encourage increased green investment.
Efforts made include encouraging information transparency, collaborating with third parties (ESG rating agency) to assess ESG performance in the Indonesian capital market, release 6 ESG Indexes, and provide investment products.
Meanwhile, the Executive Director of The PRAKARSA, Victoria Fanggidae, explained that the transition of the financial sector towards a more sustainable direction needs to pay attention to social aspects.
"The energy transition often ignores its social impacts, such as job losses in the energy and mining sectors. When we encourage the early retirement of coal-fired power plants, for example, we need to consider how many jobs will be lost," he explained.
"Benefit inequality also needs to be addressed. Many green investments only benefit corporations, while local communities bear the brunt—both in terms of livelihoods and land conflicts," Victoria concluded.
Become a Capacity Building Container
As a continuation of the series, this event was continued with workshop session which presents four main themes with competent speakers in their fields.
The first workshop raised the theme "Youth Movement for Sustainable Finance" with the presence of Enter Nusantara Action Coordinator Ramadhan and Trend Asia Researcher Herdanang Fauzan, moderated by Youth Force Project Officer Revian Pratama.
The second workshop carried the theme "The Role of Journalists in Preventing Greenwashing" which was presented by Ekutorial Editor Monica Dian, Katadata Green Communication Specialist Carolus Bregas Pranoto, and founder from Indonesian Journalists for Climate Dewi Safitri, with moderator Andjani Widya (YLKI).
The third workshop entitled “Race to the Top: Accelerating the Implementation of Sustainable Finance in Indonesia” presented Bahruddin, Director of the Banking Development Directorate of the Department of Banking Regulation and Development, Financial Services Authority (OJK), and Trioksa Siahaan, Head of Research at the Indonesian Banking Development Institute, moderated by Dia Mawesti, a Sustainable Finance Specialist.
The fourth workshop carried the theme "The Role of Civil Society in Transparency and Accountability of the Financial Sector" with speakers from Policy Strategist Coordinator Indonesia CERAH Dwi Wulan Ramadani and Executive Director of TUK Indonesia Linda Rosalina, moderated by the Indonesian Women's Coalition Mike Verawati.