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Policy Recommendations

  • Ulrich Volz
  • Judith Böhnke
  • Vanessa Eidt
  • Laura Knierim
  • Katharina Richert
  • Greta-Maria Roeber

Abstract

Based on the preceding analysis of bottlenecks and needs for the development of green finance and investments, this chapter discusses several policies that would be conducive to increasing the supply of green financing from the banking sector and boost corporations’ willingness to undertake green investment in Indonesia. Since Indonesian banks are generally highly liquid, the following policy recommendations are based on the assumption that a scar-city of funds is no major obstacle for them and that their hesitation to develop a green finance business is rather due to a lack of capacity and also a lack of demand from the corporate sector for “green” credit which would increase the sense of urgency for developing these capacities in the financial sector. For corporations, green investments seem to be associated with a fear of losing competitiveness through higher cost as compared to BAU.

Keywords

Central Bank Green Investment Asian Development Bank Lending Rate Utility Company 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Ulrich Volz, Judith Böhnke, Vanessa Eidt, Laura Knierim, Katharina Richert and Greta-Maria Roeber 2015

Authors and Affiliations

  • Ulrich Volz
    • 1
    • 2
  • Judith Böhnke
    • 3
  • Vanessa Eidt
    • 3
  • Laura Knierim
    • 3
  • Katharina Richert
    • 4
  • Greta-Maria Roeber
    • 5
  1. 1.SOASUniversity of LondonUK
  2. 2.German Development InstituteGermany
  3. 3.KfW Development BankGermany
  4. 4.Department of EconomicsUniversity of HeidelbergGermany
  5. 5.Financial Systems Development Competence CentreGIZ German Technical CooperationGermany

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