BI Injects Rp 33.7 Trillion to Banks Funding Green Economy, Eyes Standard for MSMEs
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JAKARTA, Investortrust.id — Bank Indonesia has disbursed Rp 33.7 trillion ($2.12 billion) in macroprudential liquidity incentives to banks actively financing the green economy, a top central bank official said on Friday, Aug. 8, 2025, signaling the institution's growing commitment to green finance.
Senior Deputy Governor of Bank Indonesia Destry Damayanti outlined the central bank’s strategy to accelerate green economic transition during the 2025 Karya Kreatif Indonesia (KKI) forum in Jakarta. BI, she said, has provided macroprudential liquidity incentives (KLM) as a reward for banks channeling loans into sectors such as eco-friendly housing and electric vehicles.
"Not long ago I read a report from Bank Mandiri stating they are financing a green housing complex. That’s a compelling move, and such a bank certainly deserves macroprudential liquidity incentives," Destry said during her keynote speech at the Jakarta Convention Center.
Bank Mandiri recently claimed a 30% market share in Indonesia’s green finance segment.
Supporting Green MSMEs
Destry emphasized that BI is also working to support micro, small, and medium enterprises (MSMEs) aligned with green principles through business model development, financial access facilitation, and market linkages. The institution is piloting business matching programs targeting over 3,000 green-oriented MSMEs.
"We are identifying which MSMEs are eligible for financing. Especially at events like KKI, many of these enterprises are present," she said.
In addition, BI is bolstering the green financial market by consistently purchasing green bonds as part of its monetary operations and foreign exchange reserves management.
"Bank Indonesia continues to purchase green securities, both for monetary operations and as part of our reserves," Destry added.
Toward a Common Green Standard
Later the same day, Destry also announced BI's intention to create a green MSME standard. This would serve as a common reference for banks when assessing financing eligibility for small businesses adopting environmentally conscious practices.
She called on stakeholders—including the Financial Services Authority (OJK), banking institutions, and academic circles—to collaborate on a unified methodology.
"We aim for a single standard. Let’s agree on a shared methodology, indicators, and tools. We hope academic institutions can support this initiative," said Destry.
A recent assessment conducted jointly by BI and the Faculty of Economics and Business at Universitas Gadjah Mada surveyed 600 green-oriented MSMEs and categorized them based on their level of green awareness.
The categories include “pre-adapters” (those unaware of green principles), “eco-adapters,” “eco-entrepreneurs,” and “eco-innovators.”
"We’ll focus our mentoring efforts on pre-adapters. The mindset that green is expensive must be dismantled. In fact, using fabric scraps or other leftover materials could cut costs," Destry explained.
She added that the study also reviewed existing regulations to assess whether they are sufficient to support green MSMEs. "If they’re not, let’s develop new ones together," she concluded.
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