Fair Finance Asia II Sida - Indonesia

General

The Fair Finance Asia Program (FFA) envisages to reduce the negative impact of national and cross-border bank investments in Asia on human rights, the environment and climate change, and to increase adequate financial services for pro-poor, inclusive economic development. The goal is to establish a sustainable financial sector in Asia, with financial sector institutions operating at national and regional level being more transparent and accountable and adhering to Economic, Social and Governance (ESG)-criteria. FFA is funded by Sida. This project is co-implemented by Perkumpulan Prakarsa (PRAKARSA) and Oxfam In Indonesia. Prakarsa is a local NGO working to nurture and enhance welfare ideas and initiatives through independent research and active participation for stakeholders in order to create social justice and a prosperous society. Oxfam in Indonesia has a vision of an Indonesia where people live equitably and free from the injustice of poverty, enjoy their rights, and are resilient in times of disasters. Women and girls are at the heart of all our strategies to achieve this vision. Oxfam in Indonesia has been working in 7 provinces where they support the Governmentof Indonesia, civil society, and local communities on gender justice, economic justice, and climate justice and rights in crisis. Both organizations will be a co-lead organisation of the Fair Finance Guide Indonesia (Responsibank) coalition, and was involved in Fair Finance Guide International and Fair Financial Flows programmes. This project aims to contribute to the FFA goals by developing the capacities of national CSOs that are also participating in the Fair Finance Guide coalition. Capacity development is undertaken to ensure that the high-level regional negotiation, advocacy and lobbyingprocess is performed by CSOs that are well-capacitated onfinancial sector issues, and are familiar and understand the financial structure in Asia. Research will be performed on 8 existing banks, with a mixture of state-owned banks and (biggest operating)banks in Asia. The research will focus its study on the role of the banks in expanding the palm oil business in Southeast Asia (as the palm oil business is held responsible for deforestation, land degradation, human rights abuse and land grabbing) and investments in cement plant and factories (as they caused social and environmental problems). As part of its influencing efforts, the financial services authority is approached to promote fair finance / sustainable finance in the country and at the regional level. Up until now, Prakarsa as the lead organization play the major role in decision making process. Coalition member organizations are involved mostly in advocacy process with regulators. Some are involved in theresearch depends on the focus issue of the research and the expertise of organization. YLKI as consumer association played important role in financial education, TuK has focused to do campaign in the palm oil financing, WALHI is against fossil fuel financing, Kemitraan is in favor to promote climate finance, PWYP Indonesia has concern on extractive industry but not specific from the investment point of view, while other organizations at the moment do not have specific works that is directly related to financial sector. In phase 2, there is a change in the project governance for Fair Finance in Indonesia. Oxfam in Indonesia will join the coalition andprovide an added value for strengthening the gender equality aspect, in terms of research and capacity building. Then, the project administration will need more coordination between Oxfam in Indonesia and PRAKARSA. Meanwhile, PRAKARSA is still responsible in implementing projects, providing support and oversight to execute, manage and monitor the assigned roles effectively in ResponsiBank. Onthe other hand, the members of ResponsiBank will have their own roles to assure the project activities are implemented properly based on the target plans. Role of Oxfam is to ensure the project is delivered in good quality and addressing the risk properly such assafeguarding. Oxfam is going to strengthen the element of gender justice particularly in the area of energy transition by engaging more WROs in the coalition. The activity where Oxfam in Indonesia is going to implement in this yearis conducting two times trainingon financial investment in energy sector and its impact for women.