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Lestari Advisors will work with Indonesia’s Financial Services Authority, Otoritas Jasa Keuangan (OJK), to support the implementation of Indonesia’s Sustainable Finance Taxonomy (Taksonomi Keuangan Berkelanjutan Indonesia/TKBI) Advisory Hub. As a pioneering advisory platform, the Hub provides Indonesian banks with practical guidance, consultation, and capacity building on sustainable finance regulations. It strengthens compliance with TKBI requirements and empowers banks to expand their sustainable finance portfolios, aligning them with Indonesia’s taxonomy and broader climate-financing goals.
Under the technical assistance arrangement, Lestari Advisors will support the development and delivery of the TKBI Advisory Hub as a knowledge and capacity-building platform for financial institutions implementing the TKBI.
The collaboration will initially focus on strengthening the capacity of banks in Indonesia’s KBMI* 1–3 categories. KBMI classifies commercial banks according to their core capital: KBMI 1 comprises banks with core capital of up to IDR 6 trillion (approximately USD 330 million); KBMI 2 covers banks with IDR 6–14 trillion (approximately USD 330–775 million); and KBMI 3 covers banks with IDR 14–70 trillion (approximately USD 775 million–3.9 billion); and KBMI 4 comprises the largest banks, with core capital of more than IDR 70 trillion approximately above USD 3.9 billion.
In 2025, KBMI 4 banks continued to dominate Indonesia’s banking sector, holding approximately 53–54% of total customer deposits. However, KBMI 1–3 banks remain highly important to the market, collectively accounting for nearly half of total deposits and serving a broad range of customer deposits, including regional economies, SMEs, and sector-specific clients. KBMI 3 banks represented around 26–27% of deposits, followed by KBMI 2 at about 10% and KBMI 1 at roughly 9%. Notably, KBMI 2 banks recorded the strongest annual deposit growth, at close to 20% year on year, indicating their growing market relevance. This makes KBMI 1–3 banks critical targets for expanding sustainable finance adoption, strengthening TKBI compliance, and increasing climate-aligned lending beyond the largest banks.
By targeting these small to mid-sized banks with the highest growth and evolving capacity needs, the TKBI Advisory Hub aims to facilitate:
- knowledge development and practical guidance on TKBI implementation;
- capacity-building activities for participating financial institutions;
- technical discussions on the application of the TKBI to banking activities; and
- stronger institutional understanding of sustainable-finance classification and implementation.
The cooperation is intended as a long-term collaboration, with activities implemented on an annual basis and extended in line with developments in Indonesia’s sustainable-finance landscape. Lestari Advisors will coordinate closely with OJK and provide regular updates on the implementation of the agreed work program.
The collaboration follows the publication of OJK’s TKBI Version 3 in February 2026, which completed the development of sustainable economic activity classifications covering Indonesia’s Nationally Determined Contribution-related sectors.
Through this initiative, Lestari Advisors aims to support financial institutions in translating the TKBI framework into practical institutional processes and practices, while contributing to the broader development of a sustainable finance ecosystem and ultimately accelerate Indonesia’s transition toward its Net Zero Emission target.
For more information please contact Kinanti Aldhia Naura ([email protected]).
*Kelompok Bank berdasarkan Modal Inti (KBMI): a classification system used by the Financial Services Authority (OJK) in Indonesia to categorize banks based on the size of their core capital