Sustainable finance in financing plantation companies by banking (case study of palm oil corporation in Donggala Central Sulawesi)
Abstract
Sustainable finance is a form of financing provided by Financial Institutions (FIs) to debtors by considering sustainability aspects in their decisions. Sustainable finance has not become a serious concern and orientation of FIs in providing credit or financing to debtors. Problem financing reflects the problem of two conflicting economic actors (agency). By conducting an analysis of sustainable financial performance and agency relationship analysis, this study shows that assessing a company's sustainability performance (the debtor) requires detailed criteria and indicators of sustainable finance. When disbursing credit, banks cannot only look at the financial health and stability of a company. This is because companies that already have sustainability certification and fulfill administrative aspects still have unresolved Environmental, Social, and Governance (ESG) issues. The involvement of the parties in building an Information Hub (coordination forum) related to ESG practices centered in the regions is important. © 2023, Pusat Penelitian Lingkungan Hidup - Lembaga Penelitian dan Pengabdian Kepada Masyarakat Institut Pertanian Bogor (PPLH-LPPM IPB). All rights reserved.
Date
2023Author
Rosalina, Linda (57216435228); Kartodihardjo, Hariadi (57192891378); Sujito, Arie (58635153900)
Metadata
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https://doi.org/10.29244/jpsl.13.2.290-304https://www.scopus.com/inward/record.uri?eid=2-s2.0-85174024338&doi=10.29244%2fjpsl.13.2.290-304&partnerID=40&md5=5c5643fc9911e74633bc8de9277be6f2
http://digilib.fisipol.ugm.ac.id/repo/handle/15717717/21410
