This was said by the Chairman of the Board of Commissioners of the Financial Service Authority (OJK), Muliaman Hadad.
Speaking at a seminar on sustainable financing to support Sustainable Development Goals (SDGs) here on Monday, Muliaman urged banks to select any company applying for loans on the basis of principles of environmental destruction mitigation.
"Dont expect that companies which destroy the environment can obtain bank loans in the future," he said.
"Banks must also exercise caution to extend credits to companies polluting the environment," he said.
Companies applying for bank loans must at least have obtained environmental impact analysis certification as set forth in the roadmap for sustainable finance, he said.
He further said the OJK will provide manuals to entrepreneurs so that they can increase their role as an intermediary in the economic fields, such as infrastructure, manufacturing and agriculture, while at the same time maintaining the principles of sustainable finance.
"So companies must be smart in managing environmental, social and good governance aspects in making their business decisions," he said.
Right now, the OJK has teamed up with eight banks to serve as a pioneer of sustainable financial industry. The eight banks are Bank Mandiri, BRI, BCA, BNI, Bank Muamalat, BRI Syariah, BJB and Bank Artha Graha Internasional.
"The eight banks control 46 percent of the national banks assets," he said.(WDY)
