Indonesia's financial services regulator, Otoritas Jasa Keuangan (OJK), published Version 2 of the Taxonomy for Sustainable Finance in Indonesia (TKBI) on 11 February 2025, expanding its coverage to additional economic sectors and refining the classification criteria that financial institutions use to assess whether activities qualify as green, transitional, or ineligible for sustainable financing. The update follows the first edition of the TKBI and uses the ASEAN Taxonomy for Sustainable Finance as its primary reference.
THREE-TIER CLASSIFICATION
The TKBI framework classifies economic activities into three categories: 'green', covering activities that directly contribute to environmental objectives; 'transitional', applying to activities that do not yet meet green thresholds but are on a credible pathway toward alignment; and a third category for activities that do not meet either set of criteria.
NET-ZERO TARGET
Indonesia has committed to achieving net-zero emissions by 2060.
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