Governance, risk management and compliance to enhance sustainability finance in Indonesia
Author(s): Evi Aryati Arbay and Julian Aldrin Pasha
Abstract:The resilience and health of the banking system in the long term help stabilize the financial system, encourage sustainable national economic growth, and provide protection for the public because banks are institutions trusted by the public. Risk management allows all management parties to guide business activities back to a determined path, and the company still needs to control the risk management involved. This research aims to identify the political strategy development on governance, risk management, and compliance to enhance sustainable finance in Indonesia. This research uses qualitative methodology and a literature study. The meta-analysis approach is based on 32 empirical studies from selected international journals. The results of the research conclude that by evaluating the performance of corporate governance, risk management, and compliance, this is related to achieving business goals and the company can continue to grow on a good foundation, implementing GRC efficiently, effectively, and with high quality to increase sustainable finance. Article 7 paragraph 1 of the Financial Services Authority Regulation (POJK) regarding sustainable finance, there are three (3) priorities for the implementation of sustainable finance including: First, development of financial products and services including increasing the financing portfolio, investment and placement of financial instruments in projects that are in line with implementation sustainable finance. Second, the development of the internal capacity of financial services institutions (LJK). Third, adjusting risk management, organization, governance, and standard procedures following the implementation of sustainable finance.
Evi Aryati Arbay, Julian Aldrin Pasha. Governance, risk management and compliance to enhance sustainability finance in Indonesia. Int J Political Sci Governance 2025;7(4):294-298. DOI: 10.33545/26646021.2025.v7.i4d.510
