Regulating Sustainable Finance in Indonesia: An Interpretive Perspective

A set of normative standards, known as ‘sustainable finance’, have diffused globally to enhance environmental sustainability. This thesis examines how global sustainable finance norms have been locally adopted in Indonesia by focusing on how relevant non-state actors – bank employees and environmental activists – interpreted and responded to sustainable finance. Through in-depth analysis of interview and written data, this thesis revealed the epistemic frameworks held by different non-state actors that guided their interpretations and responses to sustainable finance. Although the findings suggest Indonesian banks have strengthened the environmental policies and practices, the change is constrained by the deeply-held belief in profit generation.