PT Bank Syariah Indonesia Tbk (BSI) has taken a strategic step to strengthen its role as a pioneer in Indonesia’s sustainable finance ecosystem. The bank signed a Memorandum of Understanding (MoU) with the Global Green Growth Institute (GGGI), an intergovernmental organization dedicated to promoting sustainable economic growth.

The partnership marks an important milestone in advancing sustainable financial innovation in Indonesia. It also supports greater access and mobilization of green investment while reinforcing BSI’s ESG (Environmental, Social, and Governance) commitment to bridge the climate financing gap and help achieve national climate targets.

Aligning Islamic Banking with Global Sustainability Goals

BSI Deputy Chief Executive Officer Bob Tyasika Ananta, who witnessed the signing, stated that the collaboration is vital for developing Sharia-compliant banking products aligned with the global sustainable development agenda.

“Through this collaboration, BSI will develop sustainability-oriented financial products to support national climate targets and the Sustainable Development Goals (SDGs). Together with GGGI, we aim to strengthen the framework and capacity for issuing sustainability sukuk and expand access to climate financing from international sources," said Bob.

As the largest Islamic bank in Indonesia, BSI recognizes its role in supporting the country’s climate commitments, including the target for greenhouse gas emission reduction (NDC) by 2030 and achieving net-zero emissions by 2060. With a projected climate financing gap of IDR 3,990 trillion by 2030, the bank views private-sector involvement, particularly from Islamic finance, as essential.

Enhancing the Sustainability Sukuk Ecosystem

The MoU was signed by Rima Dwi Permatasari, BSI’s Senior Vice President of ESG, and Rowan Fraser, Country Representative of GGGI Indonesia. The collaboration aims to strengthen the supporting ecosystem for sustainability sukuk issuance aligned with credible international standards.

Rowan Fraser welcomed BSI’s initiative.

“Through this partnership with BSI, GGGI will strengthen the framework for green Islamic financial products and support thematic sukuk issuance in domestic and international markets. We hope this initiative will encourage broader private-sector participation in sustainable finance and accelerate the greening of Islamic banking in line with Indonesia’s climate targets,” said Rowan.

Focus on Strengthening Frameworks and Institutional Capacity

BSI and GGGI will focus on three main areas: developing an international-standard sustainability sukuk framework, strengthening BSI’s institutional capacity in sustainable finance, and building transparent monitoring and reporting mechanisms to increase investor trust.

The collaboration underscores BSI’s commitment to remain a leader in the Islamic finance industry while driving Indonesia’s transition toward a low-carbon and climate-resilient future.

PHOTO: BSI

This article was created with AI assistance.