The Indonesian Financial Services Authority (OJK) and the Asian Development Bank (ADB) are working to strengthen sustainable finance and local currency bond markets in Indonesia and across Asia (02/02).

Retno Ici, Executive Director of OJK’s Capital Market Specialist Group, said during the opening of the 45th ASEAN+3 Bond Market Forum (ABMF) in Yogyakarta, “The presence of regulators, market participants, investors, academics, and international organizations in this conference reflects a shared commitment to resilient, inclusive, and future-oriented capital markets. This commitment includes the application of sustainable finance principles and understanding the dynamics of the bond market.”

OJK’s Initiatives for Sustainable Finance

OJK has implemented regulations to support sustainable finance, including OJK Regulation No. 18 of 2023 on the issuance and requirements of sustainability-based debt securities and sukuk.

The regulation expands sustainable bonds to cover environmental (green), social, and other sustainability aspects.

The Indonesian Sustainable Finance Taxonomy (TKBI) also helps align national projects with international sustainability standards.

As of December 2025, the outstanding value of corporate sustainable bonds and sukuk, including green, social, sustainability, and sustainability-linked categories, reached IDR 54.94 trillion (USD 3.28 billion).

Local Currency Bond Market Development

OJK promotes local currency bond markets to increase financial stability, reduce foreign exchange risk, decrease dependence on external funding, diversify sources for infrastructure and long-term social projects, and strengthen economic resilience.

Sustainable Finance and Indonesia’s SDG Progress

Mada Dahana, Director of Financing and Investment Strategy at Indonesia’s Ministry of National Development Planning (Bappenas), stated that sustainable finance is part of the country’s strategy for inclusive economic growth and achieving the Sustainable Development Goals (SDGs).

The government has developed various financing initiatives, including sukuk, thematic bonds (SDG bonds and blue bonds), and blended financing schemes for projects supporting the SDGs.

Dahana noted that challenges remain, such as limited funding capacity, requiring participation and collaboration from multiple parties.

According to the 2025 Sustainable Development Report, Indonesia scored 70.2, above the global average of 69.5, and achieved 61.4% of the 23 SDG indicators. These achievements support Indonesia’s long-term Vision 2045.

ASEAN+3 Bond Market Forum 2026 and Related Events

The 45th ABMF meeting, held from 2–4 February 2026, was conducted in a hybrid format and attended by 200 participants from ASEAN+3 countries and regional stakeholders.

The forum aims to integrate ASEAN+3 bond markets through standardization and harmonization of regulations, market practices, and cross-border bond transaction infrastructure.

During the Indonesia Session, OJK organized panel discussions on “Integrating Sustainable Finance in Indonesia's Economic Development and Asia's Growth” and “Developing Local Currency Bond Market: Market Integration and Stakeholder Synergy.”

Speakers included representatives from ADB, the Ministry of Finance, Bappenas, Bank Indonesia, Indonesia Stock Exchange, International Capital Market Association (ICMA), and Nomura Asset Management.

Alongside ABMF, the 34th Cross-Border Settlement Infrastructure Forum (CSIF) and 3rd Digital Bond Market Forum (DBMF) were held.

CSIF focused on real-world case studies to support cross-border transactions, especially government bonds, and strengthen links between central banks and central securities depositories in ASEAN+3. DBMF discussed digital assets and digital bond market development.

PHOTO: OJK

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