Challenges of Implementing Corporate Social Responsibility (CSR) and Sustainable Finance in Financing Companies

This study aims to analyze Corporate Social Responsibility (CSR) Regulations in Financing Companies, examine the Implementation of CSR Fund Allocation by Financing Companies, and investigate the Implementation of CSR and Sustainable Finance at PT BNI Finance in the Context of Sustainable Development Goals (SDGs). The research method uses a socio-legal research approach based on studies of various disciplines such as tax, economics, and law and uses primary data, namely interviews and observations, and secondary data, namely regulations, journals, and reports. The results showed that CSR is an obligation regulated in the Law on Limited Liability Companies and Financial Services Authority (OJK) Regulation on the Implementation of Sustainable Finance for Financial Services Institutions, Issuers, and Public Companies. This obligation applies to PT BNI Finance due to the indirect environmental impact of the main business activity, namely vehicle financing. However, a significant discrepancy was found between the planned CSR fund allocation of IDR 65 million in the Sustainable Finance Action Plan and the actual realization of IDR 28.4 million in 2023. Approximately 66.7% of the implemented programs were philanthropic and not optimally integrated with sustainable finance principles or SDGs. In conclusion, the implementation of CSR at PT BNI Finance is not optimal, particularly due to the general nature of existing regulations and the absence of specific technical guidelines. The regulatory ambiguity has led to challenges in interpretation and gaps in implementation. This study recommends an immediate update of OJK regulations to include more detailed technical guidelines and SDG-based indicators. Additionally, financing companies should enhance internal capacity to design holistic and measurable CSR programs. Strengthening multi-party collaboration is also needed to foster more effective and sustainable practices.