The proper utilization of natural resources and good environmental conditions are Indonesia’s main economic capital assets. Similar to asset management, natural resources and environmental conditions need to be managed properly in order to continuously support the economy in a sustainable manner. Financial sectors can play as a catalyst in accelerating the implementation of economic activities that provide positive impacts to the environment in building a more resilient economy, therefore a common understanding regarding the business activities is needed through the Green Taxonomy. Green Taxonomy is important because it can provide a better understanding for FSS and facilitate them in the classification of green activities within the development of their financial product and/or services portofolio. Therefore, Green Taxonomy is expected to help the periodic monitoring process in the implementation of credit/financing/investment into the green sector and prevent the potential reporting of green activities (greenwashing).
Source: The Indonesia Financial Services Authority (OJK)
Composed by: The Indonesian Financial Services Authority (OJK)