PACT OVERVIEW

At the heart of Pact is the promise of a better tomorrow.  The promise of a healthy life.  Of a decent livelihood. Of sustainable natural resources that benefit communities. Now more than ever in its 42-year history, Pact is helping millions of people who are poor and marginalized discover and build their own solutions and take ownership over their future.

Pact enables systemic solutions that allow those who are poor and marginalized to earn a dignified living, be healthy, and take part in the benefits that nature provides. Pact accomplishes this by strengthening local capacity, forging effective governance systems, and transforming markets into a force for development.

CONTEXT

USAID SEGAR is a five-year (2021 – 2026) Activity designed to advance Indonesia development objectives in balancing biodiversity conservation and sustainable land use with inclusive economic and livelihoods development. To accomplish this, the Activity focuses on high-priority subnational jurisdictions with high conservation value and carbon stock, improving the management of natural resources to conserve biodiversity, reduce greenhouse gas emissions from unsustainable land use, and promote sustainable and inclusive economic growth.

The Activity collaborates with the financial sector to develop sustainable value chains, particularly in the palm oil industry. PT. Bank Kalteng, a regional development bank in Central Kalimantan, is committed to aligning its operations with the sustainable financing principles set out by the Indonesia Financial Services Authority (OJK) to fulfil the Bank of Indonesia’s requirements, which are vital for achieving its sustainable financing targets in the palm oil sector. This partnership will help PT. Bank Kalteng refine its sustainable finance practices, ensure compliance with OJK regulations, which are in line with USAID SEGAR’s goals of promoting sustainable development and enhancing access to finance for private sector partners in Central Kalimantan.

OBJECTIVES

• To strengthen PT. Bank Kalteng’s sustainable finance capabilities by ensuring regulatory compliance, integrating sustainable finance guidelines, developing tailored financing products, and deepening industry knowledge – especially within the palm oil sector. The consultant will work closely with the Green Supply Chain Specialist and Site Manager from Central Kalimantan, as well as the Finance and Investment Specialist in Jakarta.

EXPECTED OUTPUT AND OUTCOME

• Improved Sustainable Finance Guidelines tailored for the palm oil sector and integrated into the bank’s operational and risk management frameworks, ensuring compliance with OJK’s sustainable financing regulations and meeting Bank of Indonesia’s data requirements.
• Development of Sustainable Financing Products based on the improved guidelines. These products should be aligned with OJK regulations and cater to sectors with high sustainability impact, including palm oil smallholders and agroforestry initiatives.

Kalteng Bank staff with improved knowledge and understanding of sustainable financing, industry-specific risks and opportunities, and regulatory compliance, leading to betterinformed decision-making.

TASKS AND RESPONSIBILITIES

• Assess Kalteng Bank’s existing policies and identify gaps and areas for improvement to align with OJK’s sustainable financing principles and Bank of Indonesia’s data requirements.
• In coordination with USAID SEGAR and Kalteng Bank, draft comprehensive Sustainable Finance Guidelines that are specific to the palm oil sector and other priority sectors in Central Kalimantan. Ensure the guidelines are practical, implementable, and fully integrated into the bank’s operational and risk management frameworks. Liaise with Green Supply Chain Specialist Central Kalimantan, Finance and Investment Specialist, and Private Sector Engagement Lead to ensure alignment of Kalteng Bank sustainable finance guidelines with USAID SEGAR objectives.
• Create new financing products that align with the improved guidelines, targeting priority sectors like sustainable palm oil.
• Deliver tailored training sessions to strengthen the capacity of Kalteng Bank staff on key sustainability frameworks, the palm oil industry’s risks, opportunities, and market dynamics.
• Conduct and attend meetings with relevant stakeholders, including regulatory bodies, industry associations, and sustainability experts, to support the successful implementation of sustainable finance practices.

DELIVERABLES

REQUIRED QUALIFICATIONS

• A bachelor’s or master’s degree in business, management, law, environment, social sciences, economics, or a related field (Master’s degree preferred)
• A proven track record in sustainable financing, particularly in the banking sector, with a minimum of 10 years of experience.
• Familiarity with national and international environmental and social governance (ESG) standard with in-depth knowledge of OJK regulations, Bank Indonesia regulations, ISPO, RSPO, and global sustainable financing standards
• Having significant knowledge of certain sustainable finance tools, ESG criteria, sustainable practices in the palm oil industry, along with familiarity with relevant government regulations.
• Demonstrate knowledge on Indonesia’s environment and natural resources management including, but not limited to, sustainable plantation, social forestry, and biodiversity conservation.
• Proficiency in English and Indonesian.

Please submit your application to [email protected] by November 15th, 2024, with subject line STTA Sustainable Finance Guidelines for Kalteng Bank _YourName