Promoting a Sustainable and Climate Resilient Indonesian Capital Market 2024

Surabaya, September 4-5, 2024 – In an effort to strengthen commitment to sustainability and climate resilience, the Indonesian Emitters Association (AEI), in collaboration with the Financial Services Authority (OJK) and the Indonesia Stock Exchange (IDX), held a workshop titled “Promoting Sustainable and Climate Resilient Indonesian Capital Market 2024” at the IDX East Java Representative Office in Surabaya. The two-day event, held on September 4 and 5, 2024, brought together key stakeholders from Indonesia's capital market sector and participants from issuers in East Java.

The workshop was inaugurated with remarks from Mr. Agustinus A. Sunarto, Chairman of AEI East Java, followed by a speech from Mr. I Gede Nyoman Yetna, Director of Company Valuation at IDX. In her keynote address, Ms. Djustini Septiana, Deputy Commissioner for Issuers, Securities Transactions, and Special Examination at OJK, emphasized the importance of integrating sustainability aspects into the operations of Indonesia’s capital market to tackle global climate change challenges.

Enhancing Understanding of Sustainable Finance

During the talk show session, Mr. I Gede Arya Wicaksana Santosa, Deputy Director of Issuer and Public Company Supervision at OJK, outlined the developments in sustainable finance within Indonesia’s capital market and the sustainability policy initiatives currently underway. IDX, represented by Mr. Ignatius Denny Wicaksono, Head of Business Development Division, also presented on the implementation of ESG (Environmental, Social, and Governance) principles and Indonesia’s carbon trading, which are expected to support the national sustainable finance efforts.

In addition, several issuers shared their experiences related to applying sustainability principles within their companies. Mr. Eko Hajar Prakoeswo, Manager of Quality Assurance and Sustainability at PT Avia Avian Tbk, discussed how environmental aspects have been incorporated into the development of eco-friendly products. Meanwhile, Mr. Johanes Wahyudi Edward, Chief Strategy and Business Development Officer at PT Steel Pipe Industry of Indonesia Tbk, explained his company’s strategy for expanding sustainable funding options.

Panel Discussion on Capital Market Regulations

Beyond focusing on sustainability, the workshop also delved into the latest regulations issued by OJK concerning incidental reports and periodic issuer reports. Mr. Abu Rohman, Deputy Director of Issuer and Public Company Supervision, provided an in-depth explanation of affiliate transactions, material transactions, information disclosure, as well as stock splits and stock mergers. The discussion also covered periodic financial reports and reports from public accountants, presented by Mr. Sudin from the Capital Market Legal & GCG Review Committee of AEI.

In the panel discussion on periodic reporting, Ms. Okty Saptarini Minarti from the Capital Market Legal & GCG Review Committee of AEI emphasized the importance of annual reports and sustainability reports that comply with POJK 29/2026 and POJK 51/2017 standards. She also discussed the reporting of fund utilization realizations as a form of information transparency for investors.

Encouraging Transformation of the Indonesian Capital Market

The event is expected to enhance awareness and commitment among capital market participants regarding the application of sustainable finance, while preparing Indonesia to face future climate change challenges. With in-depth discussions on capital market regulations, issuers are hoped to gain a better understanding and compliance with the latest OJK regulations, leading to a more transparent, resilient, and sustainable capital market.