HARMONIZATION OF ENVIRONMENTAL LEGAL POLICIES WITH BANKING REGULATION IN INDONESIA
Main Article Content
Abstract
The banking industry plays a crucial and strategic part in efforts to manage and safeguard and take care of the earth. The bank's performance in environmental protection can be achieved by involving the purpose of preserving the environment of life in its business activities, one of which is through the provision of environmentally sound loans. These financial institutions must put forward the sustainable development goals. The current problem is that there is no regulatory firmness that specifically regulates the synergy between environmental law and banking law in a standardization of compliance of banking business activities, especially in the arrangement of environmentally sound lending and borrowing agreements. Therefore, researchers conduct research with the normative legal approach method by collecting primary, secondary and tertiary data using the rules and regulations in laws, books, journals, both the internet. This paper aims to examine the harmonization between environmental law in banking activities, suggest it to the Indonesian Financial Services Authority as well a concept of harmonization and synchronization of banking and environmental regulations by applying sustainable finance principles in a regulation internal banking credit policy.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
References
Abdul Rahman (2016), “Banks Are Prohibited from Lending To Environmentally Destructive Debtors”, Financial bisnis.com.
Abdurrahman (et.al.) Environmental Law in Indonesia, Get 1,. Paper written by Gunawan Djayaputra, with the title: "Juridical Aspects of the Role of Environmental Audit in Sustainable Development" Jakarta: Postgraduate Program at the Faculty of Law UI., 2017.
Agus Sutopo, Dian Fitriana Arthati, Utari Azalika Rahmi (2014), “Sustainable Development Goals Indicator Study”, Central Statistics Agency, 07330.1413.
Andi Nurul Fadillah Ayu and Maria Anityasari (2013), "Green Banking Implementation Analysis at PT. Bank X (Persero)Tbk" Paper in the journal Teknik Pomits Vol.1, No.1, Institut Teknologi Sepuluh November (ITS), Surabaya.
Burhanudin Abdullah, "Participation in Environmental Management Increases," Number6/105/BGub/Humas Press Release with Bank Indonesia and the State Ministry of Environment, Jakarta, September 8, 2004.
Etty Mulyati (2016), Credit Banking Legal Aspects and Small Micro Business Development in Indonesia’s Economic Development, Bandung: Refika Aditama.
Great Dictionary Of The Indonesian Language (KBBI).
Hassanuddin Rahman (2000), Environmentally Minded Banking Credit Policy, Cet. 1, Bandung: PT. Aditya Bakti,.INFID, “What are SDGs”, http://www.sdg203Indonesia.org/, (accessed on February 26, 2019).
Ida Nurlinda, "The Concept of Green Economy in the Management and Utilization of Natural Resources in Indonesia to Support Sustainable Development", Journal law, academia.edu, 2012.
IFC, LPPI, OJK, "Integration of Social and Environmental Risk Management in The Business Process of Financial Service Institutions", Module Sustainable Finance Training Package in Clean Energy Financing, Jakarta, 2018.
INFID, "What are the SDGs", 2017, (http://www.sdg203Indonesia.org/)
INFID, SDGs Goals, Sustainable Development Goals, (https://www.sdg2030Indonesia.org/page/1-tujuan-sdg), accessed 5 July 2020.
International NGO Forum on Indonesia Development (INFID), SDGs Goals: Sustainable Development Goals, https://www.sdg2030indonesia.org/page/1-tujuan-sdg, 2018.
Lastuti Abubakar, Tri Handayani (2019), “Implementation of the Principles for Responsible Banking in Indonesian Banking Practices to Realize Sustainable Development Goals”, Journal Andvance in Sosial Science Education Humanity Research.
Lastuti Abubakar & Tri Handayani (2017), “Juridical Review of the implementation of the Bank’s Precautionary Principles in Indonesian Banking Activities”, Jurnal De Lega Lata, Vol.2, Number 1 january-June 2017, p.79 (accessed on February 7, 2020).
Lastuti Abubakar, Tri handayani, C.Sukmadilaga (2021)“Regulation And Implementation Of Sustainable Finance: A Challenge To Indonesian Banks”, Jurnal Of Management Information and Decision Science.
LeIP, "Public discussion on environmental permits of the Ciptaker Law", https//www.leip.or.id, quoted on June 9, 2021.
LPPI, OJK, IFC, Modul Overview (2018) “Keuangan berkelanjutan”, Sosialisasi Keuangan Berkelanjutan Perbankan, Bandung.
Lydia Ivana Kumajas, David Paul Elia Saerang, Joubert Baren Maramis, Lucky Otto Herman, Djurwati Soepeno, “Contradictions of Sustainable Finance :A Literarture Review”, https:s//ejournal .unstrat.ac.id, 2022.
Nicholas F. Maramis, 2013, Banking Responsibility in Green Banking Enforcement Regarding Credit Policy, Manado, Sam Ratulangi University.
OJK, IFC, LPPI (2018), “Sustainable Finance Overview Module”, Socialization of Sustainable Finance, Bandung.
OJK, Sustainable Finace Indonesia, “Road map Keuangan Berkelanjutan Tahap II (2021-2022), The Future Of Finance” https://ojk.go.id/id/berita-dan-kegiatan/publikasi/Documents/Pages/Roadmap Keuangan Berkelanjutan Tahap II (2021-2025)/RoadmapKeuanganBerkelanjutanTahapII(2021-025).pdf.
UNEP FI (2018), “Policy briefing on the Relationship Between Financial Stability and Environmental Sustainability”, https://www.cisl.cam.ac.uk/resources/sustainable-finance-publications/banking, (accessed on June 8, 2021).
USAID, LPEM FEB UI, OJK (2017), “Tata Kelola Aspek Risiko Sosial dan Lingkungan, Keuangan Berkelanjutan dalam Pembiayaan Energi Bersih”, Modul keuangan berkelanjutan , Jakarta.Scribd.com/document/404099071/"understanding synchronization"/2019
Shinta Winasis, Setyo Riyanto (2020), "Digital Transformation in the Indonesian Banking Industry: impact on employee stress", Iqtishadia/Islamic banking economics journal, adopted on December 7, 2020.
WWF Indonesia, “Banking sector in ASEAN plays Key role to government Targets for Climate Change and SDGs” (2020), (https://www.wwf.or.id?60982/sector-Banking-in-ASEAN-Role-Key-Against-Target-Government-for-Climate-Change-and-SDGs.
Yuokysurinda, "Mochtar Kusumaatmadja Development Law Theory" https://yuokysurinda.wordpress.com, February 27, 2016.
Zudan Arif Fakrulloh (2020), “Law Enforcement as an Opportunity to Create Justice”, Article, Journal of Jurisprudence”, Volume 2, Number 1, http://www.mahkamahagung.go.id. (accessed On March 2020)
Constitution of Republic of Indonesia 1945
Law Number 10 of 1998 concerning Amendments to Law Number 7 of 1992 concerning Banking.
Law Number 32 of 2009 concerning Environmental Protection and Management.
Law Number 11 of 2020 concerning Job Creation
Presidential Regulation Number 59 of 2017, concerning the Implementation of the Achievement of the Sustainable Development Goals.
Government Regulation 27 of 2012 concerning Environmental Permits.
POJK Number 6 of 2016 concerning Business Activities and Office Networks Based on the Bank's Core Capital
POJK Number 18/ POJK.03/2016 concerning the Implementation of Risk Management for Commercial Banks.
POJK Number 40 / POJK.03 / 2019 concerning Asset Quality Assessment Of Commercial Banks
POJK Number 51/POJK.03/2017 concerning the Implementation of Sustainable Finance for Financial Services Institutions.
POJK No.12/POJK.03/2021 concerning Commercial Bank
POJK No.13/POJK.03/2021 concerning Implementation of Commercial Bank Products