RRI.CO.ID, Jakarta - Chairperson of the Board of Commissioners at the Financial Services Authority (OJK), Friderica Widyasari Dewi, said Indonesia’s capital market continues to make progress in sustainable financing.

As of June 2026, the cumulative value of sustainability‑based Debt Securities and Islamic Bonds (EBUS) reached IDR 85.15 trillion (approximately USD 4.74 billion).

The composition consists of green bonds at 37.19 percent, social bonds at 36.53 percent, and sustainability bonds at 24.51 percent. Indonesia’s capital market also features several indices that prioritize Environmental, Social, and Governance (ESG) principles.

Friderica said assets under management in ESG‑based mutual funds reached IDR 8.49 trillion as of June, with index mutual funds still dominating the category.

She noted that many of these indices use the Sustainable and Responsible Investment–Indonesian Biodiversity Foundation (SRI‑KEHATI) index as a benchmark for applying sustainability principles. OJK expects the continued development of sustainable financial instruments to strengthen green financing and boost investor confidence.

“For OJK, the transition toward sustainable finance is part of the agenda to strengthen Indonesia’s financial services sector. A Government Regulation on the Development of Sustainable Finance will be issued in the near future,” she said.

Environment Minister Jumhur Hidayat added that the business and financial services sectors play a crucial role in bridging the funding gap for conservation efforts, particularly through the implementation of ESG principles.

He said applying ESG can encourage more environmentally responsible investment, noting that investors now consider more than just a company’s ability to manage risk.

Investors also assess a company’s contributions to environmental restoration and its positive impact on sustainability. Jumhur said adherence to sound environmental governance will strengthen a company’s reputation and reduce the risk of greenwashing. (Gusti Panji)