Jakarta, 4 July 2022 -- PT Bank Negara Indonesia (Persero), Tbk. or BNI continues to be committed to continuing to be an agent of transformation in the application of environmental, social, and good governance principles. BNI encourages a number of ESG implementation programs as a standard for sustainable Company operational performance.
BNI Risk Management Director David Pirzada said the Company plays an important role in promoting more responsible business practices by taking into account ESG principles.
In implementing the ESG, David said BNI adheres to the 3P principles, namely profit, people and planet. BNI also continues by creating infrastructure and standards that can be followed by all business lines at BNI.
"Of course we will be proactive in implementing ESG principles. BNI plays a role as one of the transformation agents in ESG implementation to support sustainable finance," he said.
He continued that the Company has also classified its green portfolio based on several categories of sustainable business activities.
"As we made in 2020, the total category of sustainable business activities from BNI's total loan portfolio is 28% or around Rp. 168 trillion, which is currently still dominated by MSMEs, of which small and medium business activities are around Rp. 113 trillion and energy efficiency activities are around Rp. 14 trillion, or about 8% of the total CSPA.” said David.
David said that in conducting monitoring and evaluation, one of the indicators that BNI currently uses is the ESG rating from MSCI (Morgan Stanley Capital International). BNI's current rating is A and is the highest rank among Indonesian Banks.
BNI also recently issued green bonds worth IDR 5 trillion which was developed based on the guiding principles in green bonds with the funds to be used to facilitate projects in the environmental business activity category.
To assist the carbon economy transition in Indonesia, BNI has also received a rating for this Long-Term Notes from PEFINDO for one year period, with an AAA rating which is the highest rating.
"So, from the book building that has been done, which has been oversubscribed 4 times, which indicates that investors appreciate BNI's commitment. So, there is a high appreciation for BNI's commitment to sustainability finance." said David.
David explained there are many investors as well as entities that oversee how Indonesia is planning, and how Indonesia is trying to implement ESG standards.
BNI is gradually building a portfolio, which focuses on ESG results and can improve approaches to effective ESG implementation.
Chief of APAC Economist Economic Solutions Moody's Analytics Steve Cochrane said all parties must be willing to think long-term investments with long-term outputs and outcomes of at least the next 30 years.
This is intended to ensure productivity growth and employment in the midst of the industrial transition period.
Moreover, in implementing the transition, the Company often requires high costs so that the implementation of derivative programs must also be carried out carefully and measurably
"We've seen a lot of very good stable economic development policies over the last eight years and some of that has been a strong capital in infrastructure and I think it will continue to grow because there's still a lot to be done," he said.