Climate Risk in Finance

Indonesian financial institutions face concentrated exposure to flood, sea-level rise and drought, alongside transition risk in coal, palm oil and cement. OJK has introduced a green taxonomy and climate risk management guidance, but implementation depth varies widely.

Scenario analysis is largely compliance-driven. Granular hazard data is fragmented across agencies, and few institutions translate scenario output into credit decisions or capital allocation.

We build downscaled hazard-exposure datasets, run bottom-up stress tests with partner banks, and evaluate disclosure quality against ISSB and TCFD baselines.