| dc.description.abstract | This research discusses the legal comparison of bank lending that supports
sustainable finance programme between Indonesia and Germany as one of the
European Union member countries that has issued regulations related to
sustainable finance with the EU Taxonomy Directive. Sustainable finance is an
ecosystem with comprehensive support in the form of policies, regulations,
norms, standards, products, transactions and financial services that harmonize
economic, environmental and social interests in financing sustainable activities
and financing the transition to sustainable economic growth. The Banking on
Biodiversity Collapse (BOBC) report in March 2024 shows that there are still
many large banks in Indonesia that provide credit that puts Indonesia's forests at
risk. The purpose of this research is to understand the regulation of bank lending
to sustainable finance programme, the role of the Financial Services Authority in
overseeing its implementation, and a comparison of regulations with Germany in
a related context.
This research uses normative juridical research with statutory, conceptual
and comparative approaches. Data collection is done through literature study
techniques using secondary data obtained from primary legal materials in the form
of laws, secondary legal materials in the form of books, and tertiary legal
materials. The data analysis method used is qualitative juridical.
The results of this study explain that Indonesian and German regulations
have some differences in the substance of the taxonomy and the application of
sanctions, Indonesia applies administrative sanctions and Germany has sanctions
in the form of monetary fines and public statements. This reflects that the German
legal system places compliance with sustainability principles within a binding and
sanctioned legal framework, whereas in Indonesia it is still coaching and gradual.
While Indonesia's approach is understood in the context of industry readiness and
development challenges, this difference shows the level of regulatory maturity and
supervisory infrastructure readiness between the two countries. | en_US |
