WWF released the 4th Sustainable Finance Regulations and Central Bank Activities (SUSREG) report, assessing ESG integration for financial regulators in 52 countries. WWF-Indonesia presented the 2024 findings, focusing on sustainable finance development and its connection the Sustainable Banking Assessment (SUSBA) report, which highlights the effectiveness in the implementation of regulations.  

The 2024 SUSREG report notes significant advancements in climate risk management in Indonesia, particularly through new climate risk-related guidelines issued by the Financial Services Authority (OJK). It shows strengthened regulatory expectations for climate strategy and management, reflected in improved criteria for banks. The report also notes enhancements in three lines of defence in climate aspects. 

The SUSREG report also noted progress on the central bank side. One form of realization is the implementation of the Board of Governors’ Regulation (PADG) 11/2023 which regulated the Macroprudential Liquidity Incentive Policy (KLM).  

The incentives stimulated sustainable financing, with products such as green bonds, sustainability-linked loans, and other innovative financial instruments.  

Despite progress, WWF-Indonesia emphasized the need for uniform standardization and clearly define sustainability criteria to ensure interoperability across financial institutions. Furthermore, managing risks and business opportunities related to climate and nature cannot be done separately, as they are deeply interconnected.