An ANALISIS PENERAPAN GREEN BANKING BERDASARKAN POJK NO.51/POJK.03/2017 DENGAN PENDEKATAN ENVIRONMENTAL, SOCIAL, DAN GOVERNANCE (ESG) PADA BANK BUMN DI INDONESIA

Analysis Of The Implementation Of Green Banking Based On Pojk No. 51/Pojk.03/2017 Using An Environmental, Social, And Governance (Esg) Approach At State-Owned Banks In Indonesia

Abstract

Climate change and environmental degradation encourage the financial sector to play an important role in supporting sustainable development. The banking sector, particulary State-Owned Banks (Bank BUMN) in Indonesia, holds substantial responsibility due to its large-scale financing activities and its close connection with government policies. The implementation of sustainable finance in the banking sector is regulated through Financial Services Authority Regulation (POJK) No. 51/POJK.03/2017 on the Implementation of Sustainable Finance, which requires banks to prepare sustainability reports as a form of applying sustainability principles. This regulation promotes the implementation of Green Banking by integrating Environmental, Social, and Governance (ESG) aspects into banking operations. This study analyzes the implementation of Green Banking in Indonesian State-Owned Banks based on POJK No. 51/POJK.03/2017 and examines the effectiveness of sustainability reporting using the ESG approach. This research employs a normative juridical method with a literature-based approach. The data used consist of secondary data, including laws and regulations, sustainability reports of Bank Mandiri, Bank Rakyat Indonesia (BRI), Bank Negara Indonesia (BNI), and Bank Tabungan Negara (BTN) for the 2020–2024 period, as well as relevant legal and academic literature. Data are analyzed descriptively and qualitatively by assessing the conformity of banking sustainability practices with ESG indicators. The analysis is also conducted using Lawrence M. Friedman’s Legal System Theory, which emphasizes legal substance, legal structure, and legal culture. The findings show that all State-Owned Banks examined have consistently prepared sustainability reports and implemented Green Banking principles. However, the level of transparency and quantitative disclosure of ESG indicators still varies, particularly in environmental and governance aspects. Thus, although POJK No. 51/2017 has been formally implemented, strengthening legal culture and improving transparency remain necessary to ensure that Green Banking implementation becomes more effective and substantive.