International Journal of Economics, Business and Accounting Research (IJEBAR)
Vol 10 No 2 (2026): IJEBAR: Vol. 10, Issue 2, June 2026

CLIMATE RISK MANAGEMENT AND SUSTAINABLE FINANCE: CHALLENGES IN INDONESIA’S GREEN BANKING SECTOR

Indira Shofia Maulida (Fakultas Ekonomi dan Bisnis Universitas Islam Lamongan)
Ruswaji Ruswaji (Fakultas Ekonomi dan Bisnis Universitas Islam Lamongan)
Indah Kurniyawati (Fakultas Ekonomi dan Bisnis Universitas Islam Lamongan)
Lilik Nurcholidah (Fakultas Ekonomi dan Bisnis Universitas Islam Lamongan)



Article Info

Publish Date
12 Jun 2026

Abstract

Climate change poses significant risks to the banking sector, particularly in terms of asset stability and sustainable financing. Indonesia, as a developing country, faces unique challenges in implementing climate risk management and sustainable finance practices. This study employs a Systematic Literature Review (SLR) approach to identify, evaluate, and synthesize research on climate risk management and sustainable finance within Indonesia’s green banking sector. Data were collected from Scopus, Web of Science, ScienceDirect, Google Scholar, as well as official reports from OJK, World Bank, and NGFS, with inclusion criteria for articles published between 2017 and 2024. The review of 25 articles indicates that the main challenges include limited climate risk data, suboptimal integration of climate risks into bank risk management, low profitability of green financing, and inconsistent disclosure standards. The study concludes that enhancing technical capacity, regulatory harmonization, and transparency in reporting are essential to accelerate green banking implementation in Indonesia. This research also provides a basis for developing a more contextualized climate risk framework for national banks.

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Journal Info

Abbrev

IJEBAR

Publisher

Subject

Economics, Econometrics & Finance

Description

International Journal of Economics, Business, and Accounting Research (IJEBAR) is a peer-reviewed, open access international scientific journal dedicated for rapid publication of high-quality original research articles as well as review articles in all areas of Economics, Business and Accounting. ...