CONCRETISATION OF THE PRINCIPLE OF SUSTAINABLE FINANCE IN THE BANKING SECTOR LEGISLATION IN INDONESIA: LON FULLER EIGHT DESIDERATA APPROACH

This article aims is to explores an issue where Sustainable finance itself is a form of embodiment in Article 33 paragraph (4) of the 1945 Constitution of the Republic of Indonesia that the national economy is organized based on several principles, one of which is sustainable principles by maintaining a balance and unity of the national economy. Thus Article 33 paragraph (4) of the 1945 Constitution of the Republic of Indonesia is a juridical basis of sustainable finance that promotes a sustainable financial system. The research methodology was an integration of empirical juridical research methods and interpretation of the normative method results. The results indicated that with the involvement of banks in implementing sustainable finance, banks must be selective in granting credit to debtors by setting conditions that are following bank policies. Because basically, sustainable finance activities do not harm the community, it creates justice for the community based on the constitutional rights of citizens to get a decent life. In the concept of sustainable finance, economic sustainability includes several criteria in carrying out credit risk analysis, including sustainability of resources, the sustainability of results and sustainability of the business.


Introduction
The involvement of banks in running sustainable finance is certainly positive competitiveness for a bank in increasing its green portfolio, namely environmentally friendly funding, one example is organic farming. Besides, it creates added value for the bank, enhances its reputation, improves the quality of existing management risks.
So sustainable finance must be seen as an opportunity for environmentally friendly business activities, not losses and realize the sustainability of results and business.
With the economic foundation, the implementation of sustainable finance does not burden the parties and the community. Indonesia is piloting an integrated approach because they believe that banking is limited and financial deepening is necessary to develop sustainable finance. For example, banks, especially commercial banks, tend to finance short-term loans. Therefore, Indonesia plans to create more financial instruments, such as green bonds or sukuk (Islamic bonds) for long-term green investment 1 .
Sociologically, it describes the reality of society which includes the existence of a legal need in society, the condition of society and values that have lived and developed (a sense of community justice). Which consists of facts which are a demand for the needs of the community that encourage the need for sustainable finance. Of course, sustainable finance is formed to answer the problem solving that occurs, which is related to human relations in the community where one interacts not only with each other but also with the environment. Sustainable finance for banks includes sustainability criteria that facilitate citizens in the context of social and cultural integration. Besides, Indonesia is a country rich in abundant natural resources, both natural resources from the agricultural, livestock, forestry, plantation, mining, energy sources, and fisheries sectors. But it is no stranger to the problems of injustice that occur in society. Environmental pollution and environmental degradation by companies whose presence has received protests from the public demands justice. The company certainly gets the flow of loan funds 1 Sustainable Finance Case Study: Indonesia, https://www.ifc.org/wps/wcm/connect/20ff87c3-e8d8-4c6e-8f83-40cae86f5d93/SF+Case+Study+-+Indonesia+July+7+.pdf?MOD=AJPERES&CVID=lVXUH14 accessed 12 November 2019. from banks as the capital of the company's activities. So that causes people to lose natural resources which are part of their lives.
The financial services industry has an important role to provide infrastructure development financing through financial instruments based on sustainable financing or green financing so that infrastructure development can be carried out in environmentally and socially friendly corridors. There are several steps that need to be taken to encourage the development of sustainable finance. First, to ensure the availability of systematic and massive programs to ensure concern for all stakeholders. Second, collaborating with the government and the private sector.
Third, forming an increasingly complete ecosystem. Finally, the commitment of the global community to help developing countries provide the needed ecosystems 2 .
Sustainable finance is one of the solutions to the above problems. With the involvement of banks in implementing sustainable finance, banks must be selective in granting credit to debtors by setting conditions that are following bank policies.
Because basically, sustainable finance activities do not harm the community, it creates justice for the community based on the constitutional rights of citizens to get a decent life. In the concept of sustainable finance, economic sustainability includes several criteria in carrying out credit risk analysis, including sustainability of resources, the sustainability of results and sustainability of the business. Whereas the sustainability of the environmental principle is divided into 2 criteria, namely soil quality, water, air and preservation of ecosystem functions. This is the difference between the concept of sustainable finance and Corporate Social Responsibility (hereinafter referred to as CSR). The difference between the green economy, sustainable finance, and CSR is clearly explained in the table as follows: 2 Ini Taktik OJK Dorong Perkembangan Keuangan Berkelanjutan, https://www.gatra.com/detail/news/410367/ekonomi/ini-taktik-ojk-dorong-perkembangankeuangan-berkelanjutan One of the obstacles in realizing Sustainable finance is the lack of understanding of business people regarding environmentally friendly projects. For this reason, sustainable finance must provide empowerment by conducting socialization for employers as a form of business opportunity to obtain environmentally friendly funding and training for internal banks, seeing the limited human resources for knowledge regarding sustainable finance. The training of human resources in internal banks related to sustainable finance products can have a good impact to improve their ability to assess a debtor or company is indeed worthy of getting funds from the bank. Banks in carrying out sustainable finance activities do not forget about the CSR for social activities, although both have different concepts, namely by providing public facilities, business opportunities for the community, and opening employment opportunities for the surrounding environment. Thus, one of the goals of sustainable finance is to reduce the existence of social inequality.

A. The Urgency of Sustainable Finance Concretization in Indonesia
The urgency of sustainable finance in Indonesia can be viewed from 3 aspects, namely juridical, economic and sociological aspects. Ideally, the rationale underlying the process of making a law is a juridical, economic and sociological foundation, so that it can reflect good legislation. The juridical foundation is a legal provision that is a source of law/legal basis for the establishment of statutory regulation 4 . In the Economic Platform, existing regulations must contain economic considerations both macro and micro. Whereas the sociological foundation is that there is something needed by the community so that it needs regulation 5 . These three aspects are also the basis for the regulation of sustainable finance, the explanation of which is as follows: Juridical aspect, divided into both formal and material angles. One of the parties involved in supporting sustainable finance is the financial services industry. Economic aspects, sustainable finance can provide economic value and improve the economy in Indonesia. One of the national institutions authorized to carry out sustainable finance, namely banking. It can be seen from the function and purpose of banking in national economic development, namely as a financial intermediary. The Bank has principal business activities to collect and channel public funds, which are following the activities of sustainable finance, namely by providing funding or loans to debtors by bringing together economic, environmental and social aspects.
Seeing that the environment is the basis for the functioning of the economy in development in the country. Natural resources are overused by the business sector.
The natural resources are polluted by the business sector only to improve the economic sector regardless of the existing environmental conditions. For this reason, the financial services sector, such as banking, was criticized by the approach of economic law. Which are identical banks only seek economic benefits, even though there is sustainability that must be considered? Thus indirectly the negative impacts that result from the process of economic activity. The existence of a sustainable finance bank has a positive impact by considering three different fields, namely economic, social and environmental. The main mission of sustainable finance is to change national development which tends to be a greedy economy to become a green economy. The Greedy economy views economic growth by exploiting nature.
Whereas green economy changes the view of economic development by paying attention to the balance of 3P, namely People (social), Profit (economy), Planet (environment). 3P is used as the principle of sustainable finance as a form of bank concern. Companies can grow, banks commit to overcome social problems and care about the preservation of environmental functions in terms of funding or financing.
With the involvement of the bank in running sustainable finance, it is certainly positive competitiveness for a bank in increasing its green portfolio, creating added value for banks, enhancing its reputation, improving the quality of existing management risks. So sustainable finance must be seen as an opportunity for environmentally friendly business activities, not losses and realize the sustainability of results and business. With the existence of an economic foundation, the implementation of sustainable finance does not burden the parties and the community.
Sociological aspects will be described the reality of the community which includes the legal needs of the community, the condition of the community and the values that live and develop (a sense of community justice). Which consists of facts which are a demand for the needs of the community that encourage the need for sustainable finance. Of course, sustainable finance is formed to answer the problem solving that occurs, which is related to the humanitarian relations that exist in society. Where someone interacts not only with each other but also with the environment. Indonesia is a country that has abundant natural wealth, both natural resources from agriculture, livestock, forestry, plantations, mining, energy sources, and fisheries. But it is no stranger to the problems of injustice that occur in society.
Environmental pollution/environmental damage by companies whose presence has been protested by the public demands justice. The company certainly gets a flow of loan funds from banks as the capital of the company's activities. So that causes people to lose natural resources which are part of their place of life. Sustainable finance is one of the solutions to the above problems. With the involvement of banks in implementing sustainable finance, banks must be selective in granting credit to debtors by setting conditions that are following bank policies. Because basically, sustainable finance activities do not harm the community, it creates justice for the community based on the constitutional rights of citizens to get a decent life.
One of the obstacles in realizing Sustainable finance is the lack of understanding of business people regarding environmentally friendly projects. For this reason, sustainable finance must provide empowerment by conducting socialization for entrepreneurs as a form of business opportunity to obtain environmentally friendly funding and training for internal banks, seeing the limited human resources for knowledge regarding sustainable finance. The training of human resources in internal banks related to sustainable finance products can have a good impact to improve their ability to assess a debtor or company is indeed worthy of getting funds from the bank. Banks in carrying out sustainable finance activities do not forget about the Corporate Social Responsibility program for social activities, but still go hand in hand with CSR activities even though both have different concepts by providing public facilities, business opportunities for the community, and opening jobs. Which is one of the goals of sustainable finance is to reduce the existence of social inequalities.

Finance in Indonesia
In Indonesia, there are cases related to environmental pollution and the massive exploitation of natural resources caused by the business activities of industrial companies. Though the environment is very functioning for the economy in Indonesia, which is a source of income for the country. Of course, as citizens, we must be able to control the use of natural resources and preserve the environment.
As stated in Article 33 paragraph (3) that the earth, water, and natural resources and what is contained in it are controlled by the state and used entirely only for the people's prosperity. And Article 33 paragraph (4) which states national economy is VeJ Volume 5 • Nomor 2 • 429 based on economic democracy with several principles, namely the principle of togetherness, the principle of efficiency, the principle of justice, the principle of sustainability, the principle of environmentalism, the principle of independence, by maintaining a balance of progress, national economic sustainability, and unity. In carrying out the national economy sustainable finance uses the principle of sustainability. Sustainable principles are following the goal of sustainable finance, namely implementing sustainable development. The existence of sustainable finance is a sustainable concept of financing. With the existence of these two Articles, it is expected that the economic sector will not only have the principle of seeking profit but also looking at other principles.
It can be concluded that juridically in the 1945 Constitution of the Republic of Indonesia, the philosophical and juridical basis for sustainable finance is still implicitly contained in Article 33 paragraph (4). That the national economy, one of which is banking, can carry out its business activities based on all the aforementioned principles, especially the principle of sustainability, following the objectives of sustainable finance.
The institution that runs sustainable finance in the banking sector. Which is the activity of sustainably financed by the bank, namely by giving credit. Broadly speaking, according to the Banking Act Article 1 paragraph (11) credit is the provision of money from banks to other parties based on a loan and loan agreement by requiring the borrowing party to repay the debt after some time agreed with the interest. Banks in conducting their business activities through the provision of funds or granting, of course, must pay attention to the soundness of the bank, as stated in Article 29 paragraph (2) of the Banking Act stating that: "Every bank is required to maintain the soundness of the bank following the provisions of capital adequacy, asset quality, management quality, liquidity, profitability, solvability, and other aspects related to bank business activities, and is required to conduct business activities following the principle of prudence" The definition of bank soundness in the article above is one of them, how banks can guarantee that in providing credit, the borrower must also be able to repay the debt in full to the bank.
The Banking Act only few mentions about sustainable finance, which is in the explanation of Article 8 paragraph (1)  finance is also still implicit in Article 68 letter b of the PPLH Act, in which everyone who conducts business activities must maintain the sustainability of environmental functions. What each person means is to include all people including banks who are obliged to sustainably maintain environmental functions. So sustainable finance is the right step for banks to maintain environmental and social existence. Banks are expected to no longer be seen as institutions that only seek profits, but also take responsibility in the environment by minimizing environmental damage through financing. For banks to understand what is mandated in this legislation, the need for information exchange between the ministries of environment and banking is needed especially in the implementation of sustainable finance.
In implementing sustainable finance is based on several principles, namely by using the principle of responsible investment, the principles of strategies and sustainable business practices, risk management principles and the environment, Besides, there is a link between CSR and sustainable finance. Which financial service institutions that are required to be able to implement CSR must also allocate a portion of funds from CSR to support the implementation of sustainable finance as referred to in Article 8 paragraph (1). So here the bank is not only obliged to implement CSR, but it is also expected to be able to run in balance with the activities of sustainable finance. In this article, it becomes a problem, so providing a loophole to financial service institutions that is not required to implement CSR is also not required to carry out sustainable finance. The formulation of Article 8 paragraph (1) VeJ Volume 5 • Nomor 2 • 432 contradicts Article 2 which requires financial service institutions to implement sustainable finance. Thus the need for consistency in each article formulation.
The provision of incentives by financial services authorities is intended for financial service institutions, issuers and public companies that effectively implement sustainable finance as contained in Article 9 paragraph (2) in the form of: Businesses that have a negative impact on the environment can be detrimental to businesses in the industry and affect the performance of banks that provide credit/financing. Credit channeled certainly has the potential for bottlenecks or failures in the return process.
b. Reputation Risk is the risk due to a decrease in the level of trust of the public that comes from negative perceptions of a bank. Reputational risk is related to damage to the good name of the company if there are cases or problems, and of course the bank will also be associated with existing problems. Like the banks that finance companies that damage the environment. With the rumors circulating, the damage to the good name of the bank and the opinions that developed in the community about the bank were damaged.
c. Legal Risk is the risk arising from the inability of a bank to manage legal problems that can cause harm to a bank. Not only the debt or is responsible for protecting the environment but also the responsibility of the banking sector.

d. Environmental and Social Risks
the existence of environmental risks that have not been a factor in banking risk management in considering lending to industrial debtors. The four risks above must be anticipated by banks in implementing sustainable finance.
In conclusion, this Bank Indonesia Regulation (hereinafter referred to as PBI) has not yet regulated social and environmental risks. Yet in implementing sustainable finance the ability of banks in social and environmental risk management is very necessary. At least the bank has guidance on managing environmental risk into the risk of bank credit. It is not enough if the bank only expects AMDAL documents, because these documents cannot in fact fully guarantee the business continuity of the debtor.
Banks in carrying out business activities need to manage credit risk, one of which is by maintaining asset quality. Bank assets are divided into two, productive assets and non-productive assets. Earning Assets is the provision of bank funds to obtain income, one of which is in the form of credit and others. Non-Earning assets are bank assets that have potential losses, such as collateral to be taken over and others. One of the business activities of banks is the provision of funds. Provision of funds by banks must be carried out with the precautionary principle as contained in Article 2 paragraph (1) Bank Indonesia Regulation No 14/15/PBI/2012 concerning Assessment of Commercial Bank Asset Quality. In carrying out the principle of prudence by the bank the board of directors is obliged to pay attention, assess, monitor, and take steps so that asset quality remains good and maintained.
Sustainable finance is the provision of funding/financing or commonly referred to as credit. Of course, in providing credit, banks must assess the quality of credit both from the prospects of business, performance and ability to pay. One form of evaluation of business prospects is the efforts made by the debtor in order to preserve the environment as contained in Article 11 paragraph (1) letter e. For nonproductive assets whose quality is valued is Collateral Foreclosed. e. and the Social Security Organizing Agency.
Which financial services institutions above are required to implement sustainable finance in their business activities as in Article 2 paragraph (1).
In implementing sustainable finance, it is based on several principles, namely In addition there is a link between TJSL and sustainable finance. Where financial service institutions that are required to implement TJSL must allocate a portion of funds from TJSL to support the implementation of sustainable finance as referred to in Article 8 paragraph (1). So here banks are not only obliged to implement TJSL, they are also expected to be able to run in balance with sustainable finance activities. In this Article it becomes a problem so it gives a loophole to LJK that is not required to implement TJSL nor is it required to carry out sustainable finance. The formulation of Article 8 paragraph (1) is contrary to Article 2 which requires LJK to implement sustainable finance. Thus the need for consistency in each article formulation. The integration of the PPLH Law with banking policy must be carried out as an example between one regulation and another having different sanctions for the need for specific or stand-alone rules governing sustainable finance for banks. OJK certainly as an appropriate and authorized institution in making regulations is expected to be able to make regulations that are more specific to banks. POJK issued still regulates generally for financial services institutions, issuers and public companies because each industry has very different characteristics.

C. Analysis of Sustainable Finance Regulation Based on Legal Certainty
Theory.
Legal certainty is one of the legal goals that can be said as an effort to bring about justice. The real form of legal certainty is the norm, so certainty is one of the characteristics of the norm, especially written legal norms. Certainly exact rules are used as guidelines for everyone, because without the value of legal certainty it will lose meaning. Legal certainty is one of the objectives of law which can be said as an effort to realize justice. The real form of legal certainty is the norm, so certainty is one characteristic of the norms in particular written legal norms. Certain rules are certainly appropriate to be used as a guideline for behaving for everyone because without the value of legal certainty, they will lose meaning. Legal certainty contains several meanings, namely the existence of clarity, does not cause a contradiction, does not cause multiple interpretations and is easy to implement 6 . In a legal sense, it must be firm and must not be interpreted. Then the existing law must be open, meaning that anyone can easily understand the meaning of a legal provision.
Between regulations, one with the other must not be contradictory which raises doubts for the community. Thus the existing regulations or regulations can guarantee the rights and obligations of every citizen and following the culture of the community.
Fuller argues that there are eight desiderata which are good legal requirements. The eight things are 7 : In Fuller's opinion, the Generality of Law must be general in that in the legal system there must be ongoing regulations and the Law must not be made on the interests of certain groups because it must apply and apply in general. In this case, the existing arrangements relating to sustainable finance are general. There are nine settings available, each of which is generally applicable.
The second is Fuller's opinion, namely, the Law must be announced.
Announcements must be made so that the regulations made can be known and can be fully implemented by the entire community. An announcement is a must, given the announcement, someone can predict everything that has been done by him. The announcement must make it possible for every community to get it easily. Which each of the regulations mentioned above has been known and implemented by the community. Everyone is expected to be able to read, know and understand all the rules properly.
Fuller's third opinion, the Act may not be retroactive. In this case, the regulations that have been promulgated and announced at the time at that time must also take effect from the date the announcement was made. Laws can be enacted after the law has been announced. In terms of existing arrangements related to sustainable finance it has been announced and has been valid until now.
The fourth opinion of Fuller is that the formulation of the law must be clear.
Every legislation made and published must provide a formula that is easy to understand for the community. In this case, there is a lack of clarity in the formulation of legislation such as the one in Article 1 paragraph (8)  there is a lack of clarity in the formulation in which the implementation of sustainable finance is carried out with several principles, one of which is the principle of managing social and environmental risks and so on. There is no explanation of definitions and applications regarding some of these principles so that this formula is unclear. The community cannot understand and be able to implement it well, which is unclear in its contents, confusing. For this reason, some unclear formulations as explained above must be reviewed and corrected, so that the formulation in a statutory regulation can be clear. Fuller's sixth opinion, namely legislation, must be implemented. Regulators are not allowed to make rules that cannot be implemented. In formulating a statutory regulation to be implemented properly by the community, it must be adjusted to the existing legal culture and development in the community. In this case, the eight existing regulations relating to sustainable finance that have been mentioned above have been valid and implemented in the community to date.
The seven opinions of Fuller are that legislation cannot be changed frequently.
Statutory regulation is made to be applied counted for a long period. Frequent changes to regulations can lead to reduced levels of legal certainty in society. In this case, the regulations related to sustainable finance mentioned above have changed.
One of them is Banking Act Number 10 of 1998 which is a change in Banking Act Number 7 of 1992. In addition to these two regulations, others have not experienced a change in regulation.
Fuller's eighth opinion is that there must be conformity between the law and its implementation and the absence of personal interests in implementing the law and its implementation. In this case, there is no Bank Indonesia Circular Letter specifically for banks to regulate technically related to sustainable finance, thus the regulation is not fully operational and still regulates in general due to the absence of implementing regulations. Secondly, there is no implementation regulation regarding the principles of implementing sustainable finance which is contained in which until now has not been regulated for banks.
From the explanation above it can be concluded that there are eight things in Fuller's opinion that need to be considered to create legal order in society. Fuller's opinion is in fourth place (Law Formulation Must Be Clear), fifth place (Consistency of legislation), seventh order (Regulations Must Not Be Changed Often), and eighth (Conformity between Laws and Implementation) this cannot be fulfilled in the process of making a law and regulation until it has been implemented in the community, which creates legal uncertainty in the community. concerning the establishment of legislation, regulation of sustainable finance has not reflected good regulations. The formulation of the existing article is unclear so that it eliminates the principle of clarity of the formula. So that there is no legal certainty in the community. Therefore, to provide legal certainty, it is necessary to make changes to more specific regulations, of course, for banks related to sustainable finance.

Conclusion
The legislation can guarantee legal certainty in its implementation for every community development. The first is to see that the many existing regulations relating to sustainable finance are not systematically organized, fragmented.
Secondly, there is no definite explanation of the definition of sustainable finance itself, seeing from its abstract and general definition. Third is the need for implementing regulations that are specifically independent for banks and there is a need for further explanation related to each principle in implementing sustainable finance. Therefore, it is necessary to perfect clear and specifically regulating sustainable finance regulations for banks. The contents of these regulations are the