ESG in Indonesia: Legal Aspects of Green Bonds in Indonesia

In recent years, discussions on the environment, growing social divisions, and climate change have become increasingly important in Indonesia. To address such discussions, one of the initiatives taken by the Indonesian Government to support the economic growth and sustainable development is by issuing the Long-Term Development Plan (Rencana Pembangunan Jangka Panjang or “RPJP”) for the period of 2005-2025, which in turn, becomes the basis for the Sustainable Finance Roadmap Phase I (2015-2019) created by the Financial Services Authority (Otoritas Jasa Keuangan or “OJK”).

One of the “products” of the roadmap that supports sustainable development of the national economy is prioritizing the harmony and synergy of the economic, social, and environmental aspects stipulated under OJK Regulation Number 60/POJK.04/2017 on Issuances and Requirements of Green Bonds (“OJK Regulation 60/2017”).

In connection to the above, please find below, our summary of the key points of OJK Regulation 60/2017.