MASTER'S THESIS — Origins
[Towards Sustainable Banking in Indonesia: Identifying Challenges and Enabling Factors for Setting and Achieving Net Zero Targets](https://drive.google.com/file/d/1tzI0tsRpWcHCpVH-WcHAp7llM8Nmjzo2/view?usp=sharing) CONTEXT - Indonesian banks lag behind global peers in setting and achieving net-zero targets, despite their pivotal role in bridging the investment gap needed for a low-carbon transition - Limited research exists on these gaps in one of the Global South's biggest emitters METHODS - 17 semi-structured interviews with representatives from major Indonesian banks, financial regulators (including OJK and Bank Indonesia), and think tanks - Thematic analysis of interview data FINDINGS - Classified challenges into two categories: external (outside banks' control) and internal (within banks' control) - External: lack of supportive policy and regulatory frameworks; inherent challenges related to green project financing; weak public pressure and poor market demand for green financial products - Internal: lack of internal capacity and climate-related expertise; operational challenges related to data collection, reporting, and Scope 3 emissions calculation RECOMMENDATIONS - Major banks should strengthen internal and client-focused sustainability strategies - OJK and Bank Indonesia should shape a supportive ecosystem through green microprudential, macroprudential, and monetary policies - The Ministry of Finance should provide strategic support through fiscal policy reforms - Systemic change demands collaborative efforts from all stakeholders, given the banks' intermediary role and interdependencies between the real economy and financial sectors