BRI Sustainable Financing Portfolio Reaches IDR 764.8 Trillion

JAKARTA - PT Bank Rakyat Indonesia (Persero) Tbk recorded a sustainable financing portfolio of Rp764.8 trillion until the end of the third quarter of 2024.

This figure is equivalent to 61.9 percent of the total loans disbursed and BRI's bond investment portfolio.

BRI Compliance Director Ahmad Solichin Lutfiyanto stated, this proves BRI's seriousness in carrying out its role as a financial institution that supports the transition to a green and inclusive economy.

We believe that sustainable economic growth is key to a better future. Through this financing distribution, BRI is committed to encouraging green transformation and supporting programs that are oriented towards achieving sustainable development targets (SDGs)," he said, Friday, November 15.

In disbursing sustainable credit, BRI remains focused on lending credit to KKUB Credit (Resilient Business Activity Category) totaling IDR 764.8 trillion, consisting of lending to the social sector amounting to IDR 677.1 trillion, followed by loans for Environmentally Introspective Business Activities (KUBL) of IDR 83.3 trillion and financing sustainability bonds of IDR 4.39 trillion.

Credit disbursement to KUBL is dominated by lending to the sector for managing biological natural resources and the use of environmentally friendly land worth Rp55.58 trillion, green transportation of Rp10.97 trillion, environmentally friendly products of Rp7.97 trillion and renewable energy of Rp6.18 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 said.

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 Requirements for 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. ESG aspects are one aspect in Know Your Customer (KYC) which 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 said.