BNI Encourages Sustainable Financing for a Clean Economy

BNI Encourages Sustainable Financing for a Clean Economy

Jakarta, Monday, 5 September 2022 -– PT Bank Negara Indonesia Tbk. or BNI (stock code: BBNI) continued to record positive performance from its green banking portfolio in the third quarter of this year. Sustainability loan financing is one of the suitable financing products to help transform industry players implementing sustainable economic principles.

As for the sustainable portfolio disbursed by BNI as of June 2022 is worth Rp 117.9 trillion for the needs of progress and social economic empowerment (MSMEs), Rp 16.1 trillion for the management of living natural resources and sustainable land use, Rp 12 trillion for Renewable Energy needs), Rp 7.2 trillion in terms of pollution prevention, as well as the need for sustainable funding with a total value of Rp 23.4 trillion.

Bank BNI Head of Enterprise Risk Management Rayendra M Goenawan said the company is committed to supporting sustainable financing, as well as steps to mitigate the impact of climate change and in line with the Sustainable Development Goals (SDGs). 

BNI's concrete role in realizing sustainable funding needs in Indonesia has been carried out by various companies.

For example, BNI has partnered with Japfa Comfeed in the distribution of Sustainability Linked Loans, and it is starting to become an attractive option for other processing industry debtors who are transforming their production to a more sustainable process.

"Our green portfolio performance is positive. Especially with the sustainability loan product, which is the most relevant option for the transformation of our top tier debtor production process," he said in the Sustainability Financing Webinar at the end of August.

Rayendra said that BNI had also become the first bank in Indonesia to use the SPKLU Partnership Investor Own Investor Operate (IO2) cooperation scheme from PLN.

BNI encourages the development of Solar Power Plants in Indonesia and launches an electric vehicle financing program through BNI Multifinance.

The Company has issued Green Bonds with a denomination of Rp 5 trillion in June 2022 which is the capital for strengthening the green portfolio.

"Of course, there are many potential new initiatives to strengthen our green portfolio. BNI also aligns its sustainability financing strategy with the phase II sustainable finance roadmap from the OJK. This strategy consists of 5 pillars that include a sustainable framework at BNI," he said.

Meanwhile, Chairman of the Board of Commissioners of the Financial Services Authority (OJK) Mahendra Siregar said that sustainable financing initiatives are very important because they create inclusive economic growth, which is environmentally friendly and is also in line with the SDGs of the United Nations (UN).

“Environmental sustainability and climate change are our common concerns. In the financial sector, climate change can carry physical risks that can damage infrastructure and increase credit risk as well as transition risks that can trigger instability if not mitigated carefully. The need to harmonize the transition to environmentally friendly energy and a realistic period is very important,” he explained.

In this dialogue session, his party hopes to provide various perspectives on the benefits of sustainable finance. OJK is fully committed to promoting sustainable finance so that the roadmap should not stop at the narrative level alone.

“We at OJK have issued a Phase II Sustainable Finance Roadmap to encourage the development of a complete ecosystem for financial development and sustainable economic development. In addition, after publishing the green taxonomy at the beginning of the year, there are 2 priorities in the development of sustainable finance.

First, business matching discussions between actors in the financial services sector and the real sector related to green projects. Second, the policy mix of incentives and disincentives. Incentives and other disincentives are needed to encourage financing in the green sector,” he emphasized.


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