Ministry of environment (MOE) and the Financial Services Authority (OJK) signed a cooperation agreement or MoU regarding the Enhancement off The Role of The Financial Services Agency In Environmental Protection and Management Through Sustainable Development of Financial Services. The signing of the MoU conducted by the Minister of Environment Balthasar Kambuaya and Board of Commissioner OJK, Muliaman D. Hadad in Jakarta (26/5).
This cooperation is a continued program between MOE and Bank Indonesia (BI) since 2010 in the framework of memorandum of understanding green banking implementation, which sees economic development with 3P (people, profit, planet), protection and management of natural resources, and participation of all sides. With the establishment of OJK in 2012, then the activity submitted by BI to OJK.
In his speech, Muliaman explains the scope of financial services sector industry will be expanded from banking only into financial services institution. “OJK had a good chance for not only overseeing the bank, but also insurance, mutual funds, stock market and a variety of other financial instruments,” said Muliaman.
Further, he delivered the role of through the sustainable financial is expected to be concrete evidence of support to sustainable development in the form of eco-friendly projects funding sources provision, such as new and renewable energy, organic agriculture, green industry, and eco-tourism. The Increase of funding portfolio is believed will resolving the national economy, related to self-reliance in the areas of energy, agriculture, and industry.
Balthasar enthusiastic with OJK’s step. He considered, OJK has strategic role in regulating the economy through the policy of eco-friendly channeling credit/financing and encourage the formation of environmentally non-bank financial service entities. “This cooperation in line with MOE commitment in Act No. 32 of 2009 about Protection and management of the environment. MOE is ready to encourage environmental policies in the financial services sector,” he said.
PROPER and SRI-KEHATI
Previously, MOE has been running an Assessment Rating of the Company’s Performance Program or known as PROPER. “This year, here are about 2,000 companies that his obedience towards the environment is assessed. The results will be submitted to the bank to become one of the indicators of credit distribution,” Balthasar explained.
On the trading floor, Yayasan Keanekaragaman Hayati Indonesia in collaboration with Indonesia Stock Exchange has released an index of Sustainable and Responsible Investment (SRI-KEHATI) as a reference for green investments since June 2009. According to Executive Director of KEHATI, M.S Sembiring, the index gained a positive response from investors because it has consistently increased marketing by 10% above the LQ45 and JII index.
“It proves that investors are willing to pay more to a company that uses SRI-KEHATI index, considered an eco-friendly company,” said Sembiring. Currently, was recorded 25 public companies registered in the index, such as Astra International, Bank Mandiri and Unilever Indonesia.
Some eco-friendly investment projects handled out by the Government Investment Center (PIP) who in 2013 manage 10,54 trillion rupiah investment fund. Head of PIP Soritaon Siregar said that investment funds would be distributed to eco-friendly projects. “There are three eco-friendly project with total loan Rp 211,6 billion, i.e. mini-hydro project, biomass and waste to energy,” said Soritaon.
Globally, known Green Sukuk that is the investment instrument aims to provide solutions to climate change, which its type follows the scheme of an international climate bond standards. Bonds that meet the standard will obtain Climate Bonds certification as a marker to ensure their contribution to a low-carbon economy. Prototypes of Standard Climate Bonds launched since November 2011 by the United Kingdom Minister of Energy and Climate Change, Greg Barker.
One of the financial institutions that support Green Sukuk is the Islamic Development Bank (IDB), who has started 1 billion USD eco-friendly energy financing investments over the period 2010-2012. The five countries that have received financing of renewable energy from the IDB are Morocco (908 million USD), Pakistan (896 million USD), Egypt (886 million USD), Tunisia (764 million USD) and Syria (668 million USD).Azhari Fauzi.