Policy Direction and Regulation of Green Bonds in Indonesia

Abstract

Reseach in this article was funded by Research And Community Service Directorate (Direktorat Riset dan Pengabdian Masyarakat), Deputy for Research and Development Reinforcement, Ministry of Research and Technology / National Research And Innovation Agency, Republic of Indonesia,

Abstract

The sustainable development policy direction in Indonesia started with the Long-Term Development Plan (RPJP) for 2005-2025, which was then elaborated in the Law on Environmental Protection and Management. In the financial industry, the concept of sustainable development has been formulated in the Sustainable Finance Roadmap as a policy direction for sustainable development in the environmentally friendly financial sector. As a policy implementation, it has been regulated in the Financial Services Authority Regulation No. 60/POJK.04/2017 on the Issuance and the Terms of Green Bond. The FSA Regulation of Green Bond has referred to The International Capital Market Association (ICMA) in providing the guidelines for Green Bond Principles, which include four main components, Use of Proceeds, Process for Project Evaluation and Selection, Management of Proceeds, and Reporting.

Keywords: Policy Direction, Sustainable Development, Green Bond.

DOI: 10.7176/JLPG/101-03

Publication date:September 30^th 2020