Available online at JIME website: https://journal.
id/index.
php/jime/ Implementation of Sustainable Finance Regulation for Financial Institutions in Indonesia Hayu S.
Prabowo* Indonesia Banking School.
Jakarta.
Indonesia Received: 07th February 2023.
Revised: 17th November 2023.
Accepted: 25th Desember 2023 Available online: 28th December 2023.
Published regularly: December 2023 Abstract:
The interaction between people and the environment are very vital because functioning ecosystem services are important resources for people.
Economy is a subsystem of human society, which is also a subsystem of life on earth and its ecosystem.
The issue of environmental change has shifted from a peripheral concern of scientists and environmentalists to being a central issue in global policymaking.
To ensure global long-term financial stability and economic development, financial institutions need to significantly change their performance to promote more responsible and sustainable business practices.
The Financial Services Authority of Indonesia has unveiled a roadmap, which sets forth the end goal of sustainable finance in Indonesia by the financial services industry and determines the benchmark for improvements in sustainable finance.
This paper explains the reasoning and implementation of sustainable financing policies under the term of Environment.
Social, and Governance concepts.
This paper explains the complementarities of the Islamic worldview and sustainable financing policies by opening up the topic of the scientific nature of heterodox Islamic economics in particular.
The term sustainable financing conveys the fact that society and economics, finance, environment, governance, polity, institutions, etc.
cannot be independent of a unique and common set of moral and ethical values.
The ESG concept is completely in line with the Maslahah concept under shariah law.
embeds moral and ethical values in the body of heterodox Islamic economic thought aligned with the shariah Keywords: Ecosystem Services.
Economic Development.
Sustainable Finance.
ESG Concepts.
Islamic Economics.
*) Corresponding Author Email: hayu.
prabowo@ibs.
id (Hayu Prabow.
Jurnal Ilmu Manajemen dan Ekonomika.
Vol.
No.
1 Desember 2023:1-14 INTRODUCTION The objectives simultaneously.
In this light, no separate economic progress.
The side effects of the preference is placed on one over the other: the development process have also been enormous Ae social .
istributive equit.
and economic goals loss of biodiversity, climate change, environmental .
conomic efficienc.
both need to be attained .
he damage, etc.
which brought about social issues equity-efficiency principl.
such as poverty alleviation.
On the other hand, economy is an important tool in developing social
THEORITICAL
FRAMEWORK
policies and the protection and management of HYPOTHESIS DEVELOPMENT environment and natural resources.
Economy is Orthodox And Mainstream Economics AND also a tool to provide information about options.
In the modern context, the permanent idea of costs and benefits of various actions to be decided economic wellbeing is premised on scarcity of along with the measurement results (Cato, 2.
resources and thus competition and the axiom of However, at the heart of the efforts of marginal rates of substitution between everything, environmental protection is the need to resolve an good and bad.
essential intellectual problem.
The problem is that Consequently, welfare can be defined as the body of economics, science, and social maximization of output by marginal substitution knowledge that we have developed over the between labor and capital inputs.
Ecological centuries has been based on a clear differentiation between humans and nature - between natural and environment and economic growth.
Social welfare social conditions (Schumacher, undate.
This is defined in terms of tradeoffs between distributive differentiation has allowed us to parcel social equity and economic efficiency.
Such tradeoffs problems into small pieces and place these under remain true even in the case of time-dependent analytical and empirical scrutiny (Choucri, 1.
dynamics between the substituting variables.
This is but one of many indications that our Complements are possible only in the local economy is in fundamental conflict with our sense and that too, by holding all other factors ecological systems.
For this reason, we need a new constant .
eteris paribu.
Mainstream socio- paradigm of economy, which is more concerned scientific theory has no methodology to integrate with the quality of human life.
Choudhury .
morality and ethics in its epistemology as introduces the idea that sustainable socioeconomic endogenous reality.
In other words, morality and development comprehends relationships between ethics remain either as neutral elements or are economy and society from the perspective of an exogenous matters of mainstream socio-scientific integrated study between polity and the market thought, application and verification.
Development is the theory, process, and Resource scarcity, competition and substitution realization of certain major social and economic have proven to be the cause of much of deprivation Prabowo.
Implementation of SustainableA.
ISSN: 2089-4309 .
2579-4841 .
in the human world.
These assumptions are the RESULT.
DISCUSSION.