PT Bank Negara Indonesia (Persero) Tbk or BNI continues to strengthen its commitment to channeling financing in the green sector or green banking as a form of support for financing based on Environment, Social, and Governance (ESG).
BNI Corporate Secretary Okki Rushartomo revealed, to support the commitment, BNI will channel a number of corporate financing to several projects such as the fertilizer industry and the electricity industry. This step is carried out through the sustainability linked loan scheme and green loan.
"The large amount of ESG financing at BNI proves our seriousness in supporting the government's target towards net zero emissions and other priority programs," said Okki in a press release.
BNI recorded an increase in total sustainable financing to IDR190.5 trillion by the end of 2024 from IDR181.1 trillion the previous year. BNI targets sustainable sector credit to continue to grow with a projected outstanding credit of IDR199.67 trillion by the end of 2025.
In 2024, IDR117 trillion of ESG financing will be channeled to sectors related to social empowerment and Micro, Small and Medium Enterprises (MSMEs). BNI also supports the management of natural resources and sustainable and environmentally friendly land use in the amount of IDR32.4 trillion.
Apart from that, the portfolio in the renewable energy sector in 2024 reached IDR13 trillion, other financing related to sustainable water and wastewater management reached IDR25.1 trillion. The remaining IDR2.9 trillion was channeled to sectors related to pollution reduction efforts.
According to Okki, this achievement shows that BNI continues to be committed to internalizing sustainability principles, one of which is through a commitment to financing sustainable activities. This step is in line with BNI's target of achieving Net Zero Emission (NZE) in 2028 and NZE financing in 2060.
On the other hand, the company is also committed to supporting sustainable financing in order to mitigate the impact of climate change in line with Indonesia's Net Zero Emission target by 2060 or sooner.
"Green Economy is one of BNI's long-term commitments and we strive to contribute to financing green projects to realize an environmentally conscious Indonesia in the future," he explained.
Okki explained that BNI has set a number of requirements for debtors who run businesses in the Sustainable Business Activity Category (KKUB) in accordance with applicable regulations. These requirements include the type of project being financed, along with current certification or validation requirements.
In addition, BNI is currently financing the sustainability sector based on KKUB, which encompasses Environmentally Conscious Business Activities (KUBL) and Micro, Small and Medium Enterprises (MSMEs).
"ESG implementation is our focus in distributing financing while also confirming our position as a pioneer in implementing sustainable finance," concluded Okki.