Abstract
Indonesia is known as an agricultural country for its abundant natural wealth. It has a very strategic geographical position, located in the tropics and having high rainfall. The banking sector has a vital role in economic development. Even though bank business activities do not have a direct impact on the environment, banks can protect the environment through credit financing management. The problem observed in this study is the role of agricultural credit financing in realizing green banking in Indonesia. This research uses a normative juridical method supported by a literature review. The results show that the agricultural sector is directly in contact with society and has the potential to damage the environment. The protection from the banking sector is greatly needed to conserve the environment. Any form of potential environmental damage can be prevented through a special clause in the credit agreement. In conclusion, banks have a significant contribution to realizing the environmental sustainability of agricultural activities in Indonesia. At present, green banking in credit agreements has not included a clause regarding environmental management. This research suggests the banks to include a clause on environmental protection in credit agreements in accordance with the concept of green banking.
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