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Sustainable finance refers to financial services that take into account environmental, social, and governance (ESG) criteria for economic activities and projects. In Surabaya, Indonesia, sustainable finance is increasingly important as businesses and institutions work towards building a greener, more inclusive economy. The city, being one of Indonesia's largest urban centers, is at the forefront of incorporating sustainability goals into financial practices. This involves compliance with national regulations, such as those set out by the Financial Services Authority (OJK), as well as global sustainability standards. Businesses, investors, and financial entities in Surabaya are required to align with regulations that mandate transparency in how financial decisions impact society and the environment.
There are various circumstances in which you may need legal advice or assistance regarding sustainable finance in Surabaya:
A legal professional can help navigate these complex areas, ensuring your practices are compliant and minimizing risks associated with non-compliance.
Indonesia has made significant progress in shaping its sustainable finance framework. Regulatory guidance for sustainable finance comes primarily from the Financial Services Authority (OJK), which in 2017 introduced the Sustainable Finance Roadmap and in 2019 issued the OJK Regulation Number 51/POJK.03/2017. These rules impact financial service institutions, issuers, and public companies, emphasizing the integration of environmental and social responsibility in their business activities.
Key aspects of the local legal framework relevant to Surabaya include:
Local implementation in Surabaya is also influenced by the city’s commitment to environmentally conscious urban development, consistent with Indonesia’s national roadmap towards a green economy.
Sustainable finance refers to financial activities that factor in environmental, social, and governance considerations, aiming to promote long-term sustainability in business and investment.
Yes, national regulations such as those set by the Financial Services Authority apply throughout Indonesia, including Surabaya. Local authorities may also support and encourage sustainable finance initiatives in line with these regulations.
Financial institutions, issuers, and public companies operating in Surabaya must comply with these regulations. Some aspects may also apply to other businesses with significant environmental or social impact.
ESG stands for environmental, social, and governance. These are frameworks used to assess the sustainability and ethical impact of investment in a business or project.
OJK, or the Financial Services Authority, regulates and supervises the implementation of sustainable finance practices in Indonesia, providing roadmaps, regulations, and oversight.
Yes, there are incentives such as easier access to financing, potential tax benefits, and positive public recognition for companies that align their activities with sustainable finance principles.
Small businesses may not be directly mandated, but compliance can enhance their reputation, access to funding, and ability to partner with larger entities that follow strict sustainability guidelines.
The requirement largely depends on the size and type of your business. Consulting a lawyer or regulatory expert can help clarify your obligations under current laws.
Yes, foreign investors can participate, provided they adhere to Indonesian regulations, including those related to sustainable finance and foreign investment policies.
Seek immediate legal assistance to assess potential penalties and discuss steps for remedying the situation and aligning with regulatory standards.
If you are interested in learning more or need support, the following resources can be helpful:
If you think you need legal guidance in sustainable finance, start by collecting information about your business or investment plans such as contracts, reports, and details of your activities. Then, contact a lawyer or law firm in Surabaya with experience in sustainable finance and ESG matters. They can provide tailored advice, help review your obligations, and assist with preparing documentation and compliance strategies. Clear communication and early legal consultation can help you avoid risks and capitalize on opportunities in this growing area.
Remember, legal requirements in sustainable finance evolve rapidly as Indonesia progresses towards a greener economy, making professional guidance essential for staying compliant and securing long-term success.
