Media Release
4 March 2024
Australian Chargé d'Affaires to Indonesia, Steve Scott, congratulated the Indonesian Financial Services Authority (OJK) on reaching a major milestone with the launch of the first Climate Risk Management and Scenario Analysis Guidelines for Banking Sector in Jakarta on Monday, 4 March.
The guidelines offer policy support for banks and their commitment to Indonesia’s Net Zero Emission targets by providing the technical guidance to measure climate impacts toward credit and operational risks of banks.
“Australia and Indonesia are on a shared journey to achieve net zero emissions. We face similar challenges in addressing the impacts of climate change, but also similar opportunities, especially in the transition towards clean energy,” said Chargé d'Affaires Scott.
“Our two countries are now addressing areas where climate change considerations are still new to government and industry. For this reason, Indonesia and Australia are partnering and sharing knowledge in many areas relating to climate and energy. Australia is committed to supporting Indonesia’s focus on banking sector resilience to climate.”
Australia and Indonesia, through the Australia-Indonesia Partnership for Economic Development (Prospera) and OJK, will be working together to strengthen banking sector resiliency toward climate change through development of a Climate Risk Stress Test Framework. This work will be done in collaboration with Australian Treasury, the Australian Prudential Regulation Authority, the Reserve Bank of Australia, and the Australian Securities and Investments Commission.
This partnership will aim to increase investment through policy and regulatory advice to facilitate energy transition, advance gender equality and inclusion, and catalyse climate finance opportunities.
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