Indonesia's Financial Services Authority (OJK) set out new steps to strengthen banks’ climate risk management and resilience and to mobilise sustainable finance, including launching the Indonesia–UK Strategic Partnership Working Group on Climate Financing with the UK government at the second Indonesia Climate Banking Forum in Jakarta. OJK also released two publications aimed at supporting supervisory and industry approaches to climate resilience and sustainable finance. The working group was presented as a follow-up to the Indonesia–UK strategic partnership agreed by President Prabowo Subianto and UK Prime Minister Keir Starmer in January and was inaugurated by UK and OJK officials. OJK’s head of banking supervision said the banking sector’s capital position remains sufficient to absorb climate-related pressures in a well-managed transition scenario, with capital adequacy ratios staying above regulatory requirements. The Climate Risk and Banking Resilience Assessment is a forward-looking assessment framework developed with the Australian government and Prospera to measure the impact of climate risks on banking-sector resilience and provide a science-based reference for transition strategies, while the Indonesia Banking Sustainability Maturity Report 2025 assesses banks’ progress in implementing sustainable finance to inform OJK’s supervisory policy direction. OJK said the Indonesia Climate Banking Forum is intended to become a regular forum for coordination across authorities, ministries, public bodies and the financial services industry to provide measurable sustainability policy direction and support ongoing climate and sustainability financing.

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