Bank Participation in Managing Environmental Recovery Guarantee Funds in Order to Realize the Sustainable Development Goals

摘要

This article examines the SDGs agenda, that is Indonesia committed to harmonize all aspects of doing business with the SDGs purposes. Bank as one of the funding sources for large companies, had an impact from this agenda into a loan mechanism. The SDGs agenda also brought the changes in a several banking services. By giving a credit to a potential customer, banks are concerning to the priority industries (industries of energy, agriculture, infrastructure and Micro Small and Medium Enterprises (MSME). Those industries are the main targets of sustainable economic development in Indonesia. The Financing that conducted by Bank has to integrate all the aspects of environmental protection, social and risk management in order to avoid, prevent and minimize the negative impacts that will influence bank activities. The bank also concerns to develop their services due to realize the SDGs Agenda. This Article attempts to answer the legal problems of how the banks to participate in managing Environmental Recovery Guarantee Funds in order to realize the SDGs and how The Environmental Recovery Guarantee Funds used as a preventive phase as already mandated by UU PPLH.