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Driving Coal Financing Divestment

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As awareness of Environmental, Social, and Governance (ESG) standards grows, Indonesia’s banking sector has a golden opportunity to lead the transition toward a low-carbon economy. Through the #BersihkanBankmu (#CleanUpYourBank) campaign, we encourage national financial institutions to identify the risks of potentially stranded fossil fuel assets and bolster their banking reputation among international investors. Together, we push for robust climate risk transparency for future financial stability.

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Driving Coal Financing Divestment
Driving Coal Financing Divestment

Driving Coal Financing Divestment

The banking sector plays a strategic role in shaping the direction of Indonesia’s economic development. Today, the global banking landscape is transforming; an institution's value is no longer measured solely by asset growth, but also by its capacity to manage climate risks. In recent years, major banks in Indonesia have demonstrated initial commitment by introducing ESG policies. However, to maintain competitiveness in international capital markets, there is an urgent need to deepen policies concerning fossil fuel financing.

Through the #BersihkanBankmu campaign, we prioritize constructive dialogue with the sustainability and risk management divisions of banks. Our focus is to:

  • Encourage banking commitments to limit new financing for the coal sector through a gradual and measurable approach.

  • Collaborate within coalitions to support the Financial Services Authority (OJK) in formulating mandatory climate risk disclosure standards that align with international benchmarks.

  • Provide data and comparative studies for national banks to adopt green financing models that have proven successful in global markets.

  • We believe that with the right leadership from Indonesia’s major banks, the financial sector will not only be shielded from green transition risks but will also become the primary engine driving a clean, inclusive industry of the future for all Indonesians.

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