OJK supports energy transition with incentive plan

Jakarta – The Financial Services Authority (OJK) supports the energy transition with a plan to provide incentives, as a driver for companies engaged in this field to develop further. OJK will coordinate with the government to determine the right form of incentives.

OJK Chairman of the Board of Commissioners Mahendra Siregar said the incentives provided would include ease of registration and grouping of companies in the sustainable energy sector.

“We hope that the process of providing these incentives will be more complete and the administrative process easier to coordinate,” he said in an official statement.

“We will convey (the progress of the incentives) later. In accordance with P2SK (Financial Sector Development and Strengthening), besides the OJK there is a national sustainable committee, led by the Ministry of Finance,” Siregar said.

OJK’s move received support from capital market players. Director of Development of the Indonesia Stock Exchange (IDX), Hasan Fawzi, said that the incentives will encourage investor interest in investing in the energy transition sector.

“This will be a positive catalyst for the growth of sustainable investment in the Indonesian capital market,” he said.

Previously, OJK had issued various sustainable finance instruments, such as green bonds, sukuk, and sustainable reporting obligations for financial services institutions, issuers, and public companies.

These policies have encouraged an increase in sustainable investment in the Indonesian capital market. In 2021, the total managed funds of mutual funds and ETFs (Exchange Traded Fund) based on ESG (Enviromental Social Governance) issuers reached IDR 2.54 trillion. (Hartatik)

Banner photo: Shutterstock.com/Haryanta P.

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