[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-108390-en":3,"doc-seo-108390-105":30,"detail-sidebar-cat-0-en-105":96},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"doc_content":15,"file_id":16,"file_url":17,"file_type":18,"file_size":19,"view_count":20,"is_deleted":4,"is_public":21,"is_downloadable":21,"audit_status":21,"page_count":22,"language":23,"language_code":24,"site_id":25,"html_lang":24,"table_of_contents":26,"faqs":27,"seo_title":13,"seo_description":14,"update_tm":28,"read_time":29},108390,4398048949847,"Eliana","https://ap-avatar.wpscdn.com/avatar/400002536579ef2da7f?_k=1778318612642679267",8,"Research & Report","Indonesia Financial Sector Assessment Program - Technical Note - Climate Change and Environmental Risks and Opportunities","Technical Note prepared for the joint IMF-World Bank Financial Sector Assessment Program mission in Indonesia during October 2023, supporting FSAP findings and recommendations with detailed technical analysis. The note examines how climate change creates physical and transition vulnerabilities, frames the macro-financial context, and reviews climate policies and targets affecting the financial sector. It assesses current oversight practices, provides benchmarks for climate regulation and supervision, and evaluates development needs and market conditions for green finance, including barriers and policy actions.","November 2023  \nPublic Disc losure Authorized  \nPub lic Disc losure Authorized  \nTHE WORLD BANK GROUP  \nINDONESIA  \nFINANCIAL SECTOR ASSESSMENT PROGRAM  \nTECHNICAL NOTE  \nCLIMATE CHANGE AND ENVIRONMENTAL RISKS AND OPPORTUNITIES  \nPrepared by Martijn Regelink, Ou (Owen) Nie, and Michaela Dolk  \nFinance, Competitiveness, and Innovation Global Practice, WBG  \nThis Technical Note was prepared in the context of a joint IMF-World Bank Financial Sector Assessment Program (FSAP) mission in the Indonesia in October 2023 led by Ilias Skamnelos, World Bank, and overseen by the Finance, Competitiveness, and Innovation Global Practice, World Bank Group. The note contains the technical analysis and detailed information underpinning the FSAP assessment’s findings and recommendations. Further information on the FSAP program can be found [at ](at www.worldbank.org/fsap)[www.worldbank.org/fsap](at www.worldbank.org/fsap).  \nGLOSSARY  \nBAU Business-as-usual  \nBCBS Basel Committee on Banking Supervision  \nBI Bank Indonesia  \nCAR Capital Adequacy Ratio  \nCGE Computable general equilibrium  \nCOVID Coronavirus Disease  \nCRMS Climate Risk Management and Scenario Analysis  \nCRST Climate-Related Financial Risk Stress Test  \nDFIs Development Finance Institutions  \nESG Environmental, Social and Governance  \nIAIS International Association of Insurance Supervisors  \nIEA International Energy Agency  \nIFC International Finance Corporation  \nIFRS International Financial Reporting Standard  \nIKBI Inisiatif Keuangan Berkelanjutan Indonesia/ (Indonesia Sustainable Finance Initiative) IMF International Monetary Fund  \nIOSCO International Organization of Securities Commissions  \nIPCC Intergovernmental Panel on Climate Change  \nIRENA International Renewable Energy Agency  \nISSB International Sustainability Standards Board  \nJETP Just Energy Transition Partnership  \nFI Financial Institution  \nFSAP Financial Sector Assessment Program  \nFSB Financial Stability Board  \nFSOL Financial Sector Omnibus Law  \nMoF Ministry of Finance  \nMoEF Ministry of Environment and Forestry  \nNDC Nationally Determined Contributions  \nNGFS Network of Central Banks and Supervisors for Greening the Financial System  \nNPL Non-performing Loans  \nOECD Organization for Economic Co-operation and Development  \nOJK Otoritas Jasa Keuangan (Financial Services Authority)  \nPT SMI PT Sarana Multi Infrastruktur (State Infrastructure Financing Vehicle)  \nPT PLN PT Perusahaan Listrik Negara (State Electricity Company) SASB Sustainability Accounting Standards Board  \nSDG Sustainable Development Goals  \nSDS Sustainable Development Scenario  \nSFTF Sustainable Finance Task Force  \nSME Small and Medium Size Enterprise  \nSOE State Owned Enterprise  \nTCFD Task Force on Climate-related Financial Disclosures  \nWB World Bank  \nWBG World Bank Group  \nCONTENTS  \nGlossary ....................................................................................................................................................................................... 2  \nExecutive Summary ................................................................................................................................................................. 5  \nI. Introduction................................................................................................................................................................... 12  \nII. Climate change and macro-financial context .................................................................................................. 13  \nA. Vulnerabilities to climate physical risks .............................................................................................................. 13  \nB. Vulnerabilities to climate transition risks............................................................................................................ 14  \nC. Climate Policies and Targets ............................................................................................................","cbCairFntyJ8m5Mb","https://ap.wps.com/l/cbCairFntyJ8m5Mb","pdf",1550981,6,1,74,"English","en",105,"# Executive Summary\n# Introduction\n# Climate change and macro-financial context\n## Vulnerabilities to climate physical risks\n## Vulnerabilities to climate transition risks\n## Climate Policies and Targets\n## Financial sector context\n# Financial sector oversight: climate regulation and supervision\n## Key climate physical and transition risks for the financial sector\n## Current Practices to Manage Climate Risks Among Financial Institutions\n## Benchmark and recommendations for climate regulation and supervision\n# Financial sector development: markets for green growth and resilience\n## Financing needs to reach climate goals\n## State and Trends of Green Finance Markets\n## Barriers to Green Finance\n## Benchmark and Recommendations for Policies and Actions to Stimulate Green Finance\n# Annex I: Financial Sector Indicators\n# Annex II: Overview of the BCBS Principles for the management and supervision of climate-related financial risks\n# Annex III: Methodology for benchmarking supervisory response to climate risks","[{\"question\":\"What is the purpose of this FSAP technical note?\",\"answer\":\"It provides the technical analysis and detailed information underpinning the FSAP assessment’s findings and recommendations for Indonesia.\"},{\"question\":\"Which climate risk types are analyzed for the financial sector?\",\"answer\":\"The note covers vulnerabilities to climate physical risks and climate transition risks, including how they affect the financial sector.\"},{\"question\":\"What guidance does the note provide for regulators and supervisors?\",\"answer\":\"It reviews current practices among financial institutions and sets benchmarks and recommendations for climate regulation and supervision.\"},{\"question\":\"How does the note address green finance development?\",\"answer\":\"It evaluates financing needs for climate goals, the state and trends of green finance markets, barriers to green finance, and policy actions to stimulate green 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