Bankers’ perception on the Implementation of sustainable finance in Indonesia

Abstract

Financial institution has critical role in driving sustainability. As the primary target of Sustainable Finance Roadmap, Financial Service Authority (OJK) is expecting this institution to incorporate the social and environment aspects into their business process and increase their portfolio in financing green projects, so the implementation will not only affect the banking sector, but also the real sector. However, this concept is relatively new in Indonesia. Therefore, improving the understanding, knowledge, and competence of banking officers, are essential to support the implementation of sustainable finance. This study aims to see the perspective of those bankers about the sustainable finance, particularly on the implementation of Environment and Social Risk Assessment (ESRA) and green portfolio. From what is found, this study showed a different result between local and foreign banks in Indonesia.