Jakarta, Indonesia, October 16, 2025 — The Global Green Growth Institute (GGGI) and PT Bank Syariah Indonesia Tbk (BSI) have signed a Memorandum of Understanding (MoU) on the Development of Sustainable Financing Instruments through Sustainability Sukuk— a Sharia-compliant financial instrument that mobilizes funds for projects with positive environmental and social impacts. This MoU was signed by Rowan Fraser, GGGI Indonesia Country Representative, and Rima Dwi Permatasari, BSI Head of Environmental, Social, and Governance (ESG) Group. 

The signing marks a major milestone in advancing sustainable finance innovation in Indonesia and represents an important step in GGGI’s efforts to enhance access to and mobilize green and sustainable investments. 

The partnership aims to strengthen the enabling environment for the issuance of sustainability sukuk aligned with international standards—helping to bridge Indonesia’s climate financing gap and accelerate progress toward its national climate-related targets. 

“Through this collaboration, BSI is committed to developing sustainability-oriented financial products that support Indonesia’s climate ambition and the Sustainable Development Goals (SDGs). Together with GGGI, we aim to strengthen the framework and capacity for sustainable sukuk issuance and expand access to climate finance from international sources,” said Bob Tyasika Ananta, Vice President Director of Bank Syariah Indonesia.  

From left to right: Rowan Fraser (Country Representative, GGGI Indonesia), Bob Tyasika Ananta (Vice President Director, Bank Syariah Indonesia), and Rima Dwi Permatasari (Head of ESG Group, BSI).  Photo: GGGI Indonesia

Advancing Climate Action in Indonesia

Indonesia is strongly committed to combating climate change and aligning its national development strategies with the Paris Agreement. The Government has set targets a 31.89% reduction in greenhouse gas emissions through national efforts and 43.20% with international support by 2030 and commitment to achieving net-zero emissions by 2060 or sooner. While public finance has catalyzed early climate-related programs, bridging the climate finance gap-estimated at IDR3,990 trillion by 2030, still requires significant private sector involvement (Indonesia Third Biennial Update Report, 2021). 

While sovereign green sukuk has played an important role in mobilizing funds for climate-related projects, private sector participation remains limited.  

“Through this partnership with BSI, GGGI will strengthen the bank’s framework for green Islamic financial products and support issuances of thematic sukuks to both domestic and international markets. We hope that this will encourage broader private sector participation in sustainable finance and stimulate the greening of the Islamic banking sector in alignment with Indonesia’s climate goals,” said Rowan Fraser, Country Representative for Indonesia, GGGI. 

Moving forward, GGGI and BSI will jointly develop a sustainability sukuk framework aligned with international standards, strengthen institutional capacity for sustainable finance, and establish transparent monitoring and reporting mechanisms to enhance investor confidence. This collaboration underscores both institutions’ commitment to advancing Indonesia’s sustainable finance ecosystem and supporting its transition toward a low-carbon, climate-resilient future. 

About the Global Green Growth Institute (GGGI) 

The Global Green Growth Institute (GGGI) supports its Member States in transitioning their economies toward a green growth model that simultaneously achieves poverty reduction, social inclusion, environmental sustainability, and economic growth. With 53 Member States and over 30 Partner countries and regional integration organizations in the process of accession, GGGI delivers programs and projects in over 57 countries. In Indonesia, GGGI implements the Green Growth Program under the auspices of the Ministry of National Development Planning (Bappenas). The Program aims to contribute to Indonesia’s efforts to fulfill the Sustainable Development Goals (SDGs) and the Nationally Determined Contributions (NDCs).  

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For more information, visit:  https://gggi.org 

About Bank Syariah Indonesia (BSI)
 PT Bank Syariah Indonesia Tbk (BSI) was established on February 1, 2021, through the merger of BRIsyariah, Bank Syariah Mandiri, and BNI Syariah, becoming the largest Islamic bank in Indonesia. BSI offers comprehensive Sharia-compliant financial services with strong capital capacity and wide reach, striving to be a modern, inclusive, and globally competitive Islamic bank that contributes to national prosperity. 

For more information, visit: Halaman Utama | Bank Syariah Indonesia