“KBRA Releases Research – Indonesia’s Capital Relocation Highlights ESG Concerns” – Business Wire – January 22, 2020

In a press release published on Business Wire on January 22, 2020 Kroll Bond Rating Agency (KBRA) announced that it had released “a new report that highlights how Environmental, Social and Governance (ESG) factors have influenced Indonesia’s 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 considerations—as often is the case in policymaking, there are opportunity costs.

The key takeaways from this report are:

  • Indonesia’s 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.”

You may read the press release on the Business Wire internet site.

KBRA clients may download the research report on the KBRA internet site.