BPKP, Indonesia’s regulator for state-owned enterprises and key public sector agencies, has taken a significant step towards implementing its environmental, social and governance (ESG) plans, by signing a two-year memorandum of understanding (MoU) with Monash University, Indonesia and Climateworks Centre.

The MoU establishes formal cooperation between Monash University, Climateworks and Indonesia’s Development and Finance Supervisory Agency, BPKP (Badan Pengawasan Keuangan dan Pembangunan).

The BPKP is a national body which assesses and evaluates state enterprises and agencies, and reports to the Indonesian President. BPKP is responsible for the financial and development supervision of state finances, ministries, local governments and state companies.

Three people stand in front of a stage, two holding signed documents in binders.
BPKP Deputy Head Sally Salamah, Monash University, Indonesia President Andrew MacIntyre and BPKP’s Iwan Taufiq Purwanto at the exchange ceremony in Jakarta.

The MoU aims to strengthen the BPKP’s internal supervision capacity, which will allow it to more effectively assess progress on Indonesia’s sustainable development and climate goals. A major component of the project is to build a team of ESG auditors, with the capability to evaluate, supervise and guide the transition towards the green economy.

An exchange of ideas underpins the MoU.

Climateworks Centre – Monash University, Indonesia’s representative under the MoU – will provide project management expertise to support the development of an audit and accountability framework. Climateworks will also work with BPKP and with a number of state-owned enterprises, ministries and universities, to convene conferences, workshops and training.

The first panel event convened under the MoU was held at the exchange ceremony. It focused on developing a roadmap for climate resilience in Indonesia, and included discussion about the country’s Nationally Determined Contribution to the Paris Climate Agreement.

Future events will focus on climate-based finance, low-carbon economic development and investment strategies, and green energy transitions that are consistent with net zero pathways in Indonesia.

Monash University, Indonesia President Andrew MacIntyre said:
‘This agreement will allow Monash experts the opportunity to work with one of Indonesia’s most important national agencies. We are proud to be providing expertise that will help Indonesia meet its economic and sustainable development goals.’

BPKP Deputy Head Sally Salamah said:
‘BPKP is happy to work with Monash University, Indonesia and Climateworks to build capacity in the ESG supervision and evaluation to transition towards a green economy in Indonesia.’

Climateworks Centre CEO Anna Skarbek said:
‘We are delighted to be supporting Indonesia, the current G20 President, to further develop its climate and sustainable development capacity. This MoU between Monash, Climateworks and BPKP will have far-reaching benefits not only for Indonesia, but also the region as Indonesia takes on the ASEAN Chairmanship in 2023.’

For more information
Please contact: Climateworks Centre Sustainable Finance Lead Dr John Vong;
Climateworks Centre Senior Analyst Mirza Rishad