BRI Capai Sustainable Sector Loans IDR 793.6 Trillion

Illustration (Photo: Doc Antara)

PT Bank Rakyat Indonesia (Persero) recorded a credit portfolio to the sustainable financing sector in the first semester of 2024 reaching IDR 793.6 trillion.

This amount has reached 65.2 percent of BRI's total corporate bond financing and investment.

BRI Compliance Director A. Solichin Lutfiyanto revealed, in distributing the credit, the company still ensures that all investment and loan portfolios are in line with ESG standards.

"In distributing sustainable credit, BRI continues to focus on lending to KKUB Credit (Stategories for Sustainable Business Activities), which consists of lending to the social sector amounting to Rp699.8 trillion," he said, Thursday, September 19.

Then followed by loans for Environmentally Introspective Business Activities (KUBL) amounting to Rp89.8 trillion.

He detailed that the KUBL consists of lending to the biological natural resource management sector and the use of environmentally friendly land worth Rp. 60.83 trillion, green transportation of Rp. 11.47 trillion, renewable energy of Rp. 6.48 trillion, and other KUBL sectors of Rp. 11 trillion.

"As a financial institution that is committed to sustainability, BRI has taken various strategic steps to ensure that all investment and loan portfolios that are channeled are in line with ESG standards, one of which is identification related to lending for the green sector which refers to the category of Environmentally Introspective Business Activities (KUBL)," he explained.

This reference is in accordance with POJK No. 51 of 2017 concerning the Implementation of Sustainability Finances for Financial Services Institutions, Issuers and Open Companies; POJK No. 60 of 2017 concerning Issuance and Requirement of Environmentally Involved Securities (Green Bond); and POJK No. 18.

Then in lending, BRI refers to Loan Portfolio Guidelines (LPG) which stipulates credit requirements, including the use of a checklist related to ESG aspects.

The ESG aspect is one aspect in knowing your customer (KYC) who confirms whether prospective debtors have issues related to the environment, social, legal, or litigation.

"BRI adopts a comprehensive approach in assessing ESG risks, ranging from identifying high-risk sectors to implementing standards issued by regulators to mitigate potential negative impacts on the company's environment, social, and governance," he added.

Some of BRI's efforts to assess risks related to ESG factors include LPG Pre-Screening, and Loan Sub-sector Policy.