BRI Portfolio Sustainable Finance Reaches IDR 796 Trillion

JAKARTA PT Bank Rakyat Indonesia (Persero) Tbk (BBRI) recorded a company's sustainable financing portfolio of IDR 796 trillion by the end of the first quarter of 2025.

This amount is equivalent to 64.16 percent of BRI's total financing portfolio.

Director of Human Capital & Compliance BRI, Ahmad Solichin Lutfiyanto explained, this portfolio consists of social loans that reach IDR 700.6 trillion, mainly distributed to Micro, Small and Medium Enterprises (MSMEs) throughout Indonesia, green or green loans of IDR 89.9 trillion which are channeled to the Environmentally Introspective Business Activities (KUBL) sector, as well as investments in ESG-based corporate bonds worth IDR 5.5 trillion.

Every policy is based on a balance between business potential and its impact on social and environmental aspects. This approach is part of the company's long-term direction in building a resilient and sustainable business," he said, Monday, May 19.

As part of the commitment to accelerate sustainable financial practices, he continued, BRI has consistently channeled financing to industrial sectors that support the transition to a green and inclusive economy (sustainable financing).

The financing includes new renewable energy projects, environmentally friendly transportation, environmentally friendly buildings, eco-efficient products, and other Environmentally Introspective Business Activities (KUBL).

On the other hand, BRI has issued financing policies to high-emissioned sectors, including sub-sectors of palm oil, pulp and paper, coal, as well as oil and natural gas, as a form of strengthening environmental risk management in the Company's financing portfolio.

BRI also expands access to inclusive financing through the People's Business Credit Program (KUR) and Kupedes, which targets MSME actors as part of efforts to encourage job creation and build community economic resilience.

In addition, BRI has also conducted a Climate Risk Stress Testing (CRST) at the BRI financing portfolio which is part of the adoption of the Climate Risk Management and Scene Analysis (CRMS) methodology from the OJK. OJK issued a CRMS implementation guide in 2024.

In its implementation, BRI conducts financial modeling at the debtor level to measure the impact and transmission lines of the micro and macro climate-related stress factors on debtor financial reports. By 2024, BRI's CRST coverage has reached 100 percent of BRI's financing portfolio.

BRI strengthens risk management by integrating climate-related risks and trying to seize opportunities caused by climate change, "added Solichin.

Through the distribution of sustainable financing, BRI not only creates economic value and has a financial impact on customers, but also contributes to the achievement of the Sustainable Development Goals (SDGs).

BRI's support for SDGs is realized through the integration of sustainability principles in the Company's financing strategy and business model.

This focus is directed at the expansion of inclusive financial access, the transition to clean energy, and strengthening the economic capacity of the community through financing that encourages productivity and job creation.

BRI's real commitment to sustainability practices reflects a significant increase in various international ESG rating rankings.

Based on Sustainalytics' assessment, BRI managed to reduce the risk score of ESG from 20.9 in the Medium Risk category in 2021 to 17.8 in the Low Risk category in 2024.

Meanwhile, MSCI consistently ranked A from 2022 to 2024. In the 2024 ESG S&P Global assessment, BRI recorded an increase in ESG score to 75 with a position in the 95th percentile position, and was named a member of the 2024 Sustainability Yearbook Member, a recognition of sustainable financial practices that excel in the global banking sector.