KBRA Releases Research – Indonesia’s Capital Relocation Highlights ESG Concerns

Kroll Bond Rating Agency (KBRA) releases a new report that highlights how Environmental, Social and Governance (ESG) factors have influenced Indonesias decision to relocate its capital city to Borneo from Jakarta. This move serves as an example of how ESG challenges can influence public policy decisions and motivate responses. It also highlights the complexity of decision-making around ESG considerationsas often is the case in policymaking, there are opportunity costs.

The key takeaways from this report are:

  • Indonesias decision to move its capital city to Borneo from Jakarta addresses current and looming environmental and social risks, namely sinking, pollution, and congestion.
  • Plans for a smart green city would likely help contain new environmental and social risk resulting from the relocation.
  • ESG impacts must also consider the opportunity cost of choosing this ESG-sensitive project over other potential ESG-sensitive investments.

To view the report, click here.

Related Publications: (available at www.kbra.com)

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About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

Analytical Contacts:

Joan Feldbaum-Vidra, Managing Director

+1 (646) 731-2362

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Emilie Nadler, Associate, ESG

+1 (646) 731-3386

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Business Development Contact:

Mauricio Noé, Senior Managing Director, Head of Europe

+44 777 193 6570

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