Banks' Role Help Maintain Forest Management Accountability and Transparency | WWF Indonesia

Banks' Role Help Maintain Forest Management Accountability and Transparency



Posted on 29 October 2014   |  
Friends: forest and river
© WWF-Indonesia/Panda CLICK!/ Marcelinus Bejek
Jakarta – SIAP II Consortium – consisting of WWF-Indonesia, Transparency International Indonesia, and Indonesia Working Group on Forest Finance – today (10/29) launched Practical Guideline of Customer Due Dilligence, in Jakarta. In cooperation with Indonesia Transaction Report and Analysis Centre (INTRAC/PPATK) and Indonesia’s Financial Service Authority (OJK), the guideline series was also supported by United States Agency for International Development (USAID).

The Practical Guideline of Customer Due Dilligence is divided into two series. The first series entitled ‘Knowing Customers in Forestry Sector’, introduced the screening platform of financing in forestry sector. Meanwhile, the second series entitled ‘Knowing Development of Forestry Sector for Banks’, explained the role of banks on better practices improvement in forestry sector and portraying forestry industry development.  

CEO of WWF-Indonesia, Dr. Efransjah, stated, “The decliningprospect offorestry sector makes them listed as high risk  investment. The risk can be reduced by knowing  thecharacter, dynamic, actors, and stakeholders of forestry industry. Good cooperation between the government, businesses and civil societies is crucial to improve forest management, particularly to gain trust from financial sector. By prioritizing the financing on those who promoteaccountability, transparency and sustainability, banks could encourage the improvement of good governance on forestry sector.”   

Acting Mission Director of USAID Indonesia, Derrick Brown, said,” USAID is proud to work with WWF, PPATK, OJK, Ministry of Forestry and the Ministry of Finance to combat corruption in the forestry sector and promote sustainable management of natural resources. We hope that these guidelines will help banksidentifying risky customers who may be financing corrupt and illegal activities in the forestry sector.” Brown also added, “USAID collaborates with the Government of Indonesia on efforts to combat corruption, promote accountability and protect citizen rights. USAID also supports the efforts of civil society organizations and citizen groups in promoting accountability at all levels. Through targeted investments, USAID partners with Indonesia to strengthen a just and accountable democracy that is politically and socially stable.”

The Series of Practical Guideline of Customer Due Dilligence was written based on series offocused group discussions involving civil society organizations, government, banking and financial institutions, and forestry industry in the past two years. The guideline is focusing on criteria and practical ways to help banks in selecting investment in forestry sector. Sustainable financing will help to improve forestry industry performance, to support enviromentally friendly practices and to avoid forest destruction.
 
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