News

Jakarta, 25 February 2025 – The Indonesia Financial Services Authority (OJK) continues to support the Government of Indonesia’s commitment to achieving Net Zero Emissions (NZE) and the Sustainable Development Goals (SDGs). One of the key initiatives in this effort is the issuance of the Indonesia Taxonomy for Sustainable Finance (TKBI).

TKBI serves as a classification system for economic activities that contribute to Indonesia’s sustainable development, encompassing economic, environmental, and social aspects. It is designed based on three core principles: scientific credibility, interoperability with national interests, and inclusivity, ensuring its applicability to a wide range of users, including corporations and MSMEs. The framework, elements, and criteria of TKBI are primarily derived from the ASEAN Taxonomy for Sustainable Finance (ATSF), national policies, and other relevant global taxonomies. Its scope covers sectors aligned with Indonesia’s Nationally Determined Contributions (NDCs) and their updates, including enabling sectors.

Following the launch of TKBI Version 1 in February 2024, OJK introduced TKBI Version 2 on 11 February 2025, during the Annual Financial Services Industry Meeting (PTIJK). While TKBI Version 1 established the initial framework with a focus on the Energy sector, TKBI Version 2 expands its coverage to include: Construction and Real Estate (C&RE), Transportation and Storage (T&S), and Agriculture, Forestry, and Other Land Use (AFOLU) (specifically forestry and palm oil plantations). 

TKBI is structured to align with Indonesia’s national priorities, particularly Asta Cita, including: Asta Cita 2 – focused on food, energy, and water security, as well as the development of the green and blue economy, Asta Cita 8 – promoting harmony between human life, nature, and the environment to create a just and prosperous society.

This alignment is reflected in TKBI Version 2 through the inclusion of activities such as: Landed housing development for low-income communities, Sustainable Aviation Fuel (SAF), and carbon storage and sequestration in production and conservation forests.

The expansion of TKBI is expected to further drive sustainable initiatives across key economic sectors and strengthen Indonesia’s sustainable finance ecosystem.

Looking ahead, OJK will develop TKBI Version 3, which will extend coverage to the remaining AFOLU sectors, manufacturing/Industrial Processes and Product Use (IPPU), and water supply, sewerage, and waste management. TKBI will also undergo regular updates to ensure its relevance, incorporating advancements in science, technology, and sustainable finance policies at both national and global levels.

Currently, TKBI is being adopted as a reference for various national policies and is expected to be increasingly utilized by government agencies, investors, and financial and real-sector businesses. This will further facilitate sustainable finance in alignment with Indonesia’s NZE targets.

In the future, TKBI will serve as the primary reference for green and sustainable indicators in sustainability performance disclosures within Sustainability Reports. It will also contribute to the regulatory framework under the Financial Sector Development and Strengthening Law (UU P2SK).

Click here to access the complete TKBI Version 2 Document.