On March 13, 2023, a significant public discussion titled “The Role of the Climate Crisis for Shareholders and CEOs in State-Owned Bank AGMs” took place, emphasizing the urgent need for sustainable financial leadership in Indonesia. The event brought together stakeholders, environmental advocates, and financial sector leaders to explore the role of climate change in shaping the future governance of State-Owned Enterprise (SOE) banks.

One of the key speakers at the event was Erlangga Bayu, Chairman of the Indonesian Solar Energy Association (PERPLATSI), who stressed that climate risk is no longer a distant threat but a material issue that directly impacts corporate performance and long-term shareholder value. He urged shareholders and CEOs to recognize the climate crisis as a strategic business risk that must be addressed at the highest levels of corporate decision-making.

Bayu also highlighted the increasing expectations from the public and international investors for banks to align their portfolios with national and global climate targets. He pointed out that SOE banks, given their scale and influence, have a critical responsibility to lead Indonesia’s green transition through climate-resilient financing strategies and transparent sustainability reporting.

The discussion further explored how Annual General Meetings (RUPS) could serve as key platforms for climate accountability. Shareholders were encouraged to raise climate-related questions, demand clear decarbonization roadmaps, and push for governance reforms that embed sustainability in executive mandates and corporate performance indicators.

This public forum marked a growing recognition within Indonesia’s financial sector that climate resilience is not only an environmental necessity but also a fiduciary duty. As pressures mount for institutions to act, leaders like Erlangga Bayu continue to drive critical conversations that bridge the gap between finance, governance, and climate action.