The Government of Indonesia is bringing to life its commitment of reducing greenhouse gas emissions 29 per cent by 2030.
Crucial in achieving this goal will be holding government agencies and state-owned enterprises accountable for these targets.
The country’s Financial and Development Supervisory Board (BPKP) is the national body that currently audits these institutions on a range of financial and development metrics.
Climateworks Centre signed an agreement with BPKP to help add sustainability capabilities to their auditing portfolio. With this expanded scope, BPKP will play a large role in keeping the country’s reduction program on track.
Sustainability auditing is a new layer to BPKP’s current function, and a Climateworks team – led by Sustainable Finance Lead Dr John Vong – will guide the institution as it develops a brand new framework for this work.
‘BPKP, as the internal auditor of the Office of the President Indonesia, will oversee national environmental, social and governance (ESG) programs for state-owned enterprises and local governments, essential for the country’s alignment with a net zero pathway,’ said Dr Vong.
‘Over the next two years, Climateworks will work closely with BPKP to build understanding and capacity for its new role on the front lines of Indonesia’s transition to a green economy.’
Workshop lays foundation
In a three-day workshop held in Ciawi, Bogor, Indonesia, 26 BPKP employees learned from Climateworks experts about what is needed for BPKP to audit agencies and enterprises against sustainability benchmarks.
The Climateworks team focused these early sessions on bringing the BPKP group up to speed on four key areas:
- The state of sustainable development in the region
- Best practices for government auditors in sustainable development
- Examples of net zero carbon strategies and key indicators to track performance
- How to evaluate a green economy.
Throughout the three days of workshop, the participants were actively involved in discussions and enthusiastic about getting started on a sustainability audit framework for Indonesia.
‘This framework is a massive undertaking for BPKP and Climateworks Centre,’ said Guntur Sutiyono, Country Lead of the Climateworks Indonesia team.
‘It establishes BPKP as an important actor in creating system change and will put Indonesia on the right track to meet its net zero emission goal.’
The process of building the framework will take several years, and over this period Climateworks will help build capacity within BPKP, identify the key sustainability indicators that need to be tracked, and roll out pilot audit programs at government agencies.
The Climateworks team led by Dr Vong includes Guntur Sutiyono, Indonesia Country lead; Wei Sue, Sustainable Corporate System Lead; Jannata Giwangkara, Senior Project Manager – Energy; Brurce M. Mecca, Senior Analyst – Carbon Market and Oceans; and Mirza Rishad, Senior Analyst – Sustainable Finance.
This and subsequent workshops aim to strengthen financial and development supervision for climate action.
Climateworks work with BPKP is part of our larger efforts to help the Government of Indonesia achieve net zero emissions. Watch our channels for more updates.