IBC – Indonesian Business Council

IBC: Good day, Mr. Mahendra Siregar. Thank you for joining us today. To start, could you please share your definition of green leadership and its significance in today’s business environment?

Mahendra Siregar: Good day, and thank you for having me. Green leadership, in my view, is the commitment and actions taken by business leaders to integrate sustainable and environmentally-friendly practices into their operations. It’s about recognizing that long-term success is deeply intertwined with the health of our environment. This approach is significant today as consumers, investors, and regulators increasingly prioritize sustainability, making it a key driver for business resilience and growth.

IBC: As the Chairman of the Otoritas Jasa Keuangan (OJK), how do you envision promoting green leadership within Indonesia’s financial sector?

Mahendra Siregar: At OJK, we aim to promote green leadership by developing and enforcing regulations that encourage financial institutions to adopt sustainable practices. This includes advocating for green financing, which supports projects that have positive environmental impacts. Additionally, we are working on creating frameworks and guidelines that help financial institutions assess environmental risks and incorporate sustainability into their risk management strategies.

IBC: Can you provide examples of initiatives or policies that OJK has implemented to support sustainable finance in Indonesia?

Mahendra Siregar: Certainly. One of our key initiatives is the issuance of the Sustainable Finance Roadmap, which outlines our strategic approach to integrating sustainability into the financial sector. We’ve also introduced the OJK Regulation on Sustainable Finance, which mandates that financial institutions develop and implement sustainability policies. Furthermore, we’ve been actively promoting the issuance of green bonds and sukuk to fund environmentally-friendly projects.

IBC: What challenges do you foresee in implementing these green finance initiatives, and how does OJK plan to address them?

Mahendra Siregar: One of the main challenges is the lack of awareness and understanding of sustainable finance among financial institutions and businesses. To address this, we are focusing on capacity building through training and workshops. Another challenge is the need for a robust regulatory framework that balances economic growth with environmental protection. We are continuously working to refine our regulations to ensure they are both effective and practical for implementation.

IBC: How do you see the role of collaboration between the public and private sectors in advancing green leadership?

Mahendra Siregar: Collaboration is essential. The public sector can set the regulatory framework and provide incentives, but the private sector must take the initiative in adopting and implementing sustainable practices. We encourage partnerships between government agencies, financial institutions, businesses, and civil society to drive innovation and share best practices. Such collaborations can amplify the impact of green initiatives and ensure they are scalable and sustainable.

IBC: In your opinion, what are the key qualities that a green leader should possess?

Mahendra Siregar: A green leader should have a strong vision for sustainability and the courage to drive change. They should be knowledgeable about environmental issues and committed to continuous learning. Transparency and accountability are also crucial, as they build trust with stakeholders. Finally, a green leader should be collaborative, fostering partnerships and engaging with diverse stakeholders to achieve common sustainability goals.

IBC: Looking ahead, what are your aspirations for Indonesia’s financial sector in terms of sustainability and green leadership?

Mahendra Siregar: I aspire for Indonesia’s financial sector to be a leader in sustainable finance within the region. This means having robust frameworks that encourage green investments, widespread adoption of sustainable practices among financial institutions, and a thriving market for green financial products. Ultimately, I hope to see a financial sector that not only supports economic growth but also contributes significantly to environmental preservation and social well-being.

IBC: Thank you, Mr. Siregar, for sharing your insights and vision with us. It’s been a pleasure speaking with you.

Mahendra Siregar: Thank you for the opportunity. It’s been a pleasure discussing these important topics with you.