The ADFIAP Consulting (AC) Group, under a consulting mandate from Germany’s Gesselschaft fuer Internationale Zusammenarbet GmbH (GIZ) Indonesia and working with the Indonesian Banking Development Institute (LPPI), conducted the “Sustainable Finance Training Program” (SFTP) for two Indonesian regional banks, namely, Bank NTB in Mataram, Lombok and Bank Sumut in Medan, Sumatera Utara on November 13-15, 2015 and November 18-21, 2014, with 33 and 29 bank officers participating, respectively. All participants also took a qualifying examination for certification as green banker by the Financial Services Authority of Indonesia (OJK) right after the conduct of the training.
The launching of both training programs were attended by high ranking officials of Bank NTB and Bank Sumut, Bank Indonesia (Central Bank), the OJK, the Ministry of Environment, USAID and BAPPEDA (local government agency for planning and development). Several key government officials involved in the Government of Indonesia’s green transformation goals also presented their key program initiatives in support of greening the financial sector.
While Indonesian banks have signified support towards the Government’s target of reducing greenhouse gas emissions by 26% based on so-called “business as usual approach” up to 41% with international support by 2020, the lack of knowledge on green financing has been identified as a major obstacle in enabling the banks to do their share in the Government’s greening efforts. The GIZ Regional Economic Development (RED) Program in Indonesia is addressing this challenge and is offering to improve the readiness of banks to pursue this new challenge through the Sustainable Finance Program focused on greening the banks’ internal operations as well as their clients’ businesses through green financing.
The SFTP was developed with active partnership and collaboration of a core group (including AC) under GIZ-RED Program with the objective of further enhancing the training curriculum based on feedback from these two pilot banks and thereafter replicating it to other Indonesian banks which are envisioned to serve as catalysts for the Indonesian Government’s green transformation efforts.
AC’s Ms. Cora D. Conde, Atty. Alberto B. Reyno and Ms. Arlene S. Orencia were the lead resource persons of the training program. The training program launch was undertaken after a 2-week (September 29 to October 11, 2014) stocktaking and assessment mission in Indonesia by AC’s Ms. Cora D. Conde and Mr. Vic C. Abainza. The AC, guided by the results and feedback from this mission, developed the training modules, lesson plans and presentation materials on the agreed six training modules covering the following topics: Greening the Bank; Introduction to Green Finance and the Green Credit Cycle; Green Investment Opportunities; Credit Appraisal and Risk Management; Loan Administration and Remedial Management.
ADFIAP www.www.adfiap.org, through this Indonesian Sustainable Finance Program, envisions a significant contributory role in empowering Indonesian banks to support the green transformation movement of their government in pursuance of one of its pillars, the environment.