Choosing green investments to support the energy transition: BI

JAKARTA (Antara) – Hel Rahadian, Assistant Director of Macroprudential Division at Bank Indonesia, on Wednesday urged investors to choose green financial or investment products to support the development of green projects that can accelerate efforts in the energy transition. advised the public.

“Choose a green bank and watch the financial statements whether you invest in green (projects) or not, whether the credit is green or not,” Wednesday.

To participate in energy transition efforts and help mitigate climate change, he advised Indonesians to invest in financial or investment instruments owned by companies operating green projects.

When choosing an investment product, I suggest people to consider stocks of companies listed on the Sustainable and Responsible Investment – KEHATI Index (SRI-KEHATI) and green Islamic bonds or bond products green sukuk. did.

“With green bonds, green mutual funds, (and) many green projects starting to be developed now, we can start with ourselves and invite people around us.

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According to Rahadyan, financial instruments and investments should be chosen carefully as they will affect environmental sustainability in the future.

In the same discussion, Deni Ridwan, Director General of Government Debt (SUN), Department of Budget Lending and Risk Management, Ministry of Finance, called on the public to consider the Triple Bottom Line (BTL), which focuses on three dimensions. Protect your profits and the planet while choosing financial and investment products.

In addition, ordinary citizens can also apply the 2L formula: law and logic. This means the product is licensed by the Financial Services Authority (OJK) and people know where the company’s profits come from.

There is also the 2R method (Risk and Return), which requires understanding both the risks and potential benefits of the product.

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