<![CDATA[In response to climate change and Indonesia’s commitment to achieving Net Zero Emissions by 2060, sustainable finance has become an essential instrument for supporting the energy transition. The Financial Services Authority (OJK) introduced the Indonesian Sustainable Finance Taxonomy (TKBI) to classify economic activities into green and transition categories, providing guidance for financial institutions in allocating sustainable financing. However, the continued involvement of banks in syndicated lending to coal-related corporations raises concerns about the effectiveness of sustainable finance implementation. This study examines the implementation of the TKBI in encouraging financial institutions and corporations to support renewable energy financing and evaluates the role of the banking sector in facilitating Indonesia’s energy transition. Employing a normative juridical approach with a descriptive analytical method, the research analyzes primary, secondary, and tertiary legal materials, supported by relevant policy and regulatory documents. The findings indicate that the TKBI serves as a strategic regulatory framework for directing financial institutions and corporations toward a just and sustainable energy transition. It provides a classification mechanism that encourages banks to integrate environmental, social, and governance considerations into financing decisions, business policies, and risk management strategies. Nevertheless, continued financing of coal-related activities highlights challenges in aligning banking practices with national sustainability objectives. The study concludes that strengthening regulatory implementation, institutional accountability, and sustainable financing practices is essential to enhancing the banking sector’s contribution to renewable energy development and achieving Indonesia’s Net Zero Emissions target by 2060.]]>
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