HARMONIZATION OF ENVIRONMENTAL LEGAL POLICIES WITH BANKING REGULATION IN INDONESIA

Abstract

The banking industry plays a crucial and strategic part in efforts to manage and safeguard and take care of the earth. The bank's performance in environmental protection can be achieved by involving the purpose of preserving the environment of life in its business activities, one of which is through the provision of environmentally sound loans. These financial institutions must put forward the sustainable development goals. The current problem is that there is no regulatory firmness that specifically regulates the synergy between environmental law and banking law in a standardization of compliance of banking business activities, especially in the arrangement of environmentally sound lending and borrowing agreements. Therefore, researchers conduct research with the normative legal approach method by collecting primary, secondary and tertiary data using the rules and regulations in laws, books, journals, both the internet. This paper aims to examine the harmonization between environmental law in banking activities, suggest it to the Indonesian Financial Services Authority as well a concept of harmonization and synchronization of banking and environmental regulations by applying sustainable finance principles in a regulation internal banking credit policy.