Berita


CEO Networking 2023, BNI Supports Sustainable Investment in Indonesia

CEO Networking 2023, BNI Supports Sustainable Investment in Indonesia

8/11/2023. As a partner bank of the Financial Services Authority (OJK) in encouraging the implementation of sustainable finance, PT Bank Negara Indonesia (Persero) Tbk or BNI is proactively promoting a sustainable portfolio to strengthen the stimulation of sustainable economic growth in Indonesia.

This was conveyed by BNI Director of Institutional Banking Muhammad Iqbal when representing BNI President Director Royke Tumilaar in the CEO Networking 2023 sharing session organized by the Indonesia Stock Exchange (IDX), Tuesday (7/11/2023). Also present were Chairman of the OJK Board of Commissioners Mahendra Siregar and IDX President Director Iman Rachman, as well as the Managing Directors of Listed Companies on the IDX.

Iqbal explained, BNI's sustainable finance channeled for the Sustainable Business Activity Category (KKUB) until September 2023 was recorded at IDR 178.9 trillion or 27% of BNI's total credit portfolio.

This sustainable finance is mainly provided for the needs of community social economic development through financing the MSME segment of IDR 118.3 trillion, environmentally friendly business management and biological natural resources of IDR 21.5 trillion, new and renewable energy of Rp10.1 trillion, financing for pollution prevention of Rp3.7 trillion, and other Sustainable Portfolio of IDR 25.3 trillion.

Furthermore, BNI is taking a more aggressive approach to issuing sustainability-linked loans. As of September 2023, the corporation had channeled SSL amounting to IDR 4.7 trillion to significant industry partners in numerous industries, such as the agro-industry, cement, and steel manufacture.

Iqbal stated that, in accordance with the government's goal of reaching Net Zero Emissions by 2060, BNI is dedicated to continuing to promote sustainable finance. The company continues to encourage the socialization of ESG implementation and provides favorable pricing as an incentive to all BNI partners.

"As a financial institution, we want to continue to move actively and responsively to the needs and to be able to adapt to the changes of this sustainable economic trend. We want to keep optimizing income by contributing to the social community, while actively safeguarding environmental sustainability," he said.

Iqbal continues that Indonesia is currently facing two situations: stable economic growth at 5% over the next five years and the percentage of the working-age population at a rate of 76.2%.

To avoid the middle-income trap, gross national income (GNI) per capita is predicted to reach $14,000 by 2045 as a result of the shift from consumer-to-investment-driven economies. As a result, he contends that the policy direction on sustainable investment becomes something of crucial importance in further strengthening its future.

Iqbal continued that there are three areas of investment that have great potential for growth in the future. First, the global supply chain integration industry covers depleted natural resources, electric vehicle ecosystems, and different export-oriented products, mainly automotive products, food and beverages, and electronics.

Secondly, industries that require large numbers of labor, including agriculture, tourism, and the trade in services.

Thirdly, investments that lead ESG include geothermal energy, food and water resource sustainability, as well as environmentally-conscious infrastructure and energy transition in Indonesia.

"Given that the environmental risks of living and climate change are becoming increasingly highlighted, we will focus more on sectors related to sustainable economies," he said.

Related

Arsip Berita