Implementing Sustainable Finance Principles: Legal Implications of Ease of Doing Business Towards Banking Credit Approval

Abstract

The application of licenses based on commitments as a part of ease of doing business has shifted the obligations present for business actors. One of the forms of said change is the absence of an obligation to conduct EIAs as a basic requirement to acquire a business license. This could boost investment within Indonesia, on the other hand, it also has the potential to prompt legal risks that is the revocation of business licenses towards actors that had failed to fulfill business license commitments under GR OSS. This provision impacts the application of the principle of sustainable financing. With the requirement of EIAs as a fulfillment towards the commitments that are prerequisite of business licenses in the OSS GR, banks gain the challenge of adjusting their approach towards the gaining of profits from long term investments depends on a sustainable future, specifically in the administering of credits by banks. the article aims to analyze the legal implications of changing regulation upon EIAs requirement on the ease of business licensing in licenses based on commitments though Online Single Submission towards the application of the principle of sustainable financing and the juridical consequences of the use of licenses based on commitments in the approval of bank credit. This  research uses a normative juridical approach specifying in the descriptive analysis of primary and secondary sources of law. The identification the changed regulation upon EIAs requirement on the ease of business licensing in licenses based on commitments though Online Single Submission has legal consequences on the applications of sustainable financing principle. Sustainable principle pushed out the alteration of the approach of banks in the initiation of sustainable economic development with the gaining of profits from long term investments dependant on future sustainable policy frameworks. Bank must take that approach is through policy frameworks that support sustainable economic development by crystallizing EIAs as a tool for credit breaking