Indonesia Takes Steps to Strengthen Climate Finance Governance

July 26, 2025 - 01:15

Jakarta, July 25, 2025 – Indonesia’s Ministry of Finance (MoF), in collaboration with the Financial Services Authority (OJK) and Bank Indonesia, is making significant strides towards establishing the Sustainable Finance Committee (SFC). This initiative is in accordance with Law No. 4/2023, which focuses on the Development and Strengthening of the Financial Sector (P2SK).

The formation of the SFC aims to address a considerable financing gap that has hindered the country's efforts to meet its climate goals. By creating a structured governance framework, the committee will facilitate better coordination among financial institutions and stakeholders involved in sustainable finance.

This collaborative effort is expected to enhance transparency and accountability in climate-related investments, ultimately fostering a more robust financial ecosystem that supports Indonesia’s sustainable development objectives. As the nation continues to face environmental challenges, the establishment of the SFC represents a crucial step towards ensuring that financial resources are effectively allocated to initiatives that promote environmental sustainability and resilience.