Back to overview

Regulation No. 51/POJK.03/2017

Indonesia Current 2017

This new regulation make it mandatory for any financial institution, issuer and public company to prepare annual sustainability report to accompany their annual report. The regulation will come into force on budget calender year 2019 for big banks and budget calender year 2020 for all public-listed companies; and other financial service institutions even the pension fund by 2025.

Issuer name

Indonesia Financial Services Authority (OJK)

More information

The OJK Regulation on Sustainable Finance was introduced as a specific and binding regulation for all players of the financial services sector, as part of the efforts to create a financial system that applies sustainable principles. This OJK Regulation also signified the implementation of Act No. 32 of 2009 on Environmental Protection and Management, in relation to development and employment of environmental economy instruments, which include policies that are concerned with social and environmental factors in the banking, capital market, and non-bank financial industries. Among others, this regulation set requirements for Action Plans on Sustainable Finance to be submitted to the OJK together with business plans, when financial services companies required to do so tender their business plans. The Action Plans should be submitted either as part of the business plans or separate documents. For financial services companies not required to present their business plans, they may submit their Action Plans latest by January 31. The other two OJK regulations on Capital Market concerning SMEs mark OJK’s efforts to facilitate small, and medium-sized issuers to access the capital market through public-offering mechanism. Thus, the capital market could serve as an alternative funding channel for these issuers, other than banks.

Comply or explain

True

Organizations covered by the instrument

All Companies

Target organization notes

All public listed companies

Industry scope

All/none specified

Industry scope notes

Sustainability Reporting for all financial service institutions and public listed companies

Disclosure venue

Annual report

ESG coverage - E (Environment)

Energy, Water, Waste & Hazardous Substances, Materials & Resource Efficiency (circularity), Biodiversity & Ecosystem Services, Climate & GHG emissions, Environmental Compliance & Risk

ESG coverage- S (Social)

Employment Conditions, Policies and Practices, Product & Services Responsibility, Social Impacts & Value Creation

ESG coverage- G (Governance)

Structure & Leadership, Accountability, Anti-Corruption and Anti-Competitive Behaviour

ESG coverage- Eco (Economic & General)

Economic performance, Indirect economic impacts

Status

Current

Country

Indonesia

Region

Asia Pacific

Date of publication

2017

Issuer type

Financial Market Regulators

Reporting requirements

Public law and regulation

Mandatory or voluntary

Mandatory

The geographical scope

National/federal

Go to the instrument