Determination of Sustainable Financial Index: BUKU 4 Period 2016 – 2019

Teresia Angelia Kusumahadi, Adji Pratikto, Ansgarius Davin Ruli

Abstract


Sustainable finance is one of the instruments that can be used to achieve sustainable development goals. Practices of sustainable finance are regulated in the Financial Services Authority Regulation No. 51 / POJK.03 / 2017 (“POJK 51”), where one of the requirements in its implementation is to publish a Sustainability Report annually. However, before being obliged to release a Sustainability Report, banks, particularly BUKU 4, had published the report. Seeing that the Sustainability Report has been prepared before reporting requirements, these banks are running a sustainable business. To measure the level of sustainability of a bank, we build a Sustainable Financial Index. The Sustainable Financial Index is compiled based on 42 indicators built on sustainable finance’s eight principles. Using Bank Mandiri, BCA, BNI, BRI, and Bank CIMB as the observed bank, the results show that the Sustainable Financial Index for each bank has increased from year to year. The increment indicates that the practice of sustainable finance is running well in BUKU 4. Besides, each bank has different characteristics; thus, the principles that stand out in implementing sustainable finance differ from one bank to another. However, the index has several limitations, so that further index development is required.

Keywords: BUKU 4, Sustainable Financial Index, POJK 51, Sustainability Report


Full Text:

PDF

References


Bisogno, M., Cuadrado-Ballesteros, B. and García-Sánchez, I.M., 2017. Financial sustainability in local governments: Definition, measurement and determinants. In: Financial Sustainability in Public Administration: Exploring the Concept of Financial Health.

Lee, Y.J. and Huang, C.M., 2007. Sustainability index for Taipei. Environmental Impact Assessment Review.

Otoritas Jasa Keuangan, 2014. Roadmap Keuangan Berkelanjutan di Indonesia, 2015-2019. Otoritas Jasa Keuangan.

Otoritas Jasa Keuangan, 2017. Peraturan Otoritas Jasa Keuangan Nomor 51/POJK. 03/2017 tentang Penerapan Keuangan Berkelanjutan bagi Lembaga Jasa Keuangan, Emiten, dan Perusahaan Publik.

Otoritas Jasa Keuangan, 2018. Pedoman Teknis Bagi Bank Terkait Implementasi POJK Nomor 51/POJK.03/2017 Tentang Penerapan Keuangan Berkelanjutan Bagi Lembaga Jasa Keuangan (LJK), Emiten, dan Perusahaan Publik.

Pati, A.P., 2008. Subsidised micro financing and financial sustainability of SHGs. The Indian Journal of Commerce, 61(4).

Piot-Lepetit, I. and Nzongang, J., 2014. Financial sustainability and poverty outreach within a network of village banks in Cameroon: A multi-DEA approach. European Journal of Operational Research.




DOI: https://doi.org/10.24002/kinerja.v25i1.4358

Refbacks

  • There are currently no refbacks.