PT Bank Negara Indonesia (Persero) Tbk or BNI continues to show its commitment to support the government in achieving the Net Zero Emissions (NZE) target by 2060. One of the concrete steps taken by BNI is through the purchase of 40,000 carbon credit units by its subsidiary, BNI Sekuritas.
BNI Credit Risk SEVP Bun Hendra explained, this step is part of BNI's strategy to achieve NZE faster, namely in 2028 for operations and in 2060 for the financing portfolio. This policy is in line with the government's target of net zero emissions by 2060 or sooner.
“Carbon credits are one of the strategies to offset emissions,” Bun said at the Carbon Digital Conference Indonesia (CDC) 2024 with the theme ”Reimagining Indonesia Carbon Market: Digital Innovations for Global Integrity” in Jakarta on Wednesday (11/12/2024).
BNI also shows its commitment to sustainable financing. As of September 2024, BNI has routed green financing worth IDR70.9 trillion, up from IDR60.6 trillion in the same period last year.
This financing covers various green sectors, such as renewable energy amounting to IDR10.18 trillion, green buildings IDR4.58 trillion, environmentally friendly transportation IDR3.51 trillion, and natural resource management and land use IDR31.97 trillion.
Overall, BNI's sustainable financing portfolio reached IDR187.6 trillion or equivalent to 26% of total loans. “BNI is also the first bank in Indonesia to issue Green Bond,” Bun added.
Not only focusing on financing the large sector, BNI also empowers MSMEs that apply Environmental, Social, and Governance (ESG) principles through the flagship BNI UMKM Ramah Lingkungan (BUMI) program. To date, BNI has channeled IDR30.2 billion in financing to 133 MSMEs.
Another program, Jejak Kopi Khatulistiwa (JKK), provides support to 424 MSME farmers with total financing of IDR 54.5 billion. This initiative aims to encourage financial inclusion while strengthening the green economy ecosystem.
BNI also actively educates industry players through the BNI ESG Sustainability and Transition Event (BEST) program. This program helps debtors and business actors increase their capacity in making the transition to sustainability. According to Bun, there are still many opportunities for BNI to support the Carbon Exchange ecosystem, such as channeling financing for projects listed on the Carbon Exchange and providing custodial facilities for carbon trading.
On the same occasion, Deputy Minister of Environment Diaz Hendropriyono said that Indonesia has cooperated with Japan through the Mutual Recognition Arrangement (MRA) for bilateral carbon trading.
“Indonesia is open to collaborating with various countries in order to create a Carbon Market that is easily accessible, reliable, and able to improve the welfare of the people,” Diaz said.
Diaz hopes that this collaboration can accelerate the achievement of Indonesia's NZE target and save the world from the impacts of climate change.
With concrete steps such as purchasing carbon credits, financing the green sector, and empowering ESG-based MSMEs, BNI has proven its role as a pioneer of sustainable finance in Indonesia.