BRI Green Financing Continues To Grow Amid The Green Transformation Of The Banking Industry

JAKARTA - PT Bank Rakyat Indonesia (Persero) Tbk or BRI continues to show its commitment to supporting sustainable development through increasing green financing. Until the end of the first quarter of 2025, BRI's sustainable financing portfolio was recorded to continue to grow and has now reached IDR 89.9 trillion. This figure increased 8.18% on an annual basis (year-on-year), along with the green transformation which is increasingly becoming the focus of the national banking industry.

If detailed, BRI's green financing portfolio includes various strategic sectors, including sustainable natural resource management of Rp61.16 trillion, environmentally friendly products of Rp7.80 trillion, renewable energy of Rp6.47 trillion, and green transportation of Rp3.55 trillion, green buildings, and other environmental projects. This is in line with OJK Regulation No. 18 of 2023 concerning Issuance and Requirement of Debt and Sustainability-Based Sukuk.

Overall, BRI itself has become the bank with the largest sustainable financing portfolio in Indonesia with a nominal value of IDR 796 trillion by the end of the first quarter of 2025, which includes green financing, MSME financing, and investment in ESG-based Corporate Bonds. This amount is equivalent to 64.16% of BRI's total portfolio of financing and corporate bonds investment.

BRI's Human Capital & Compliance Director A. Solichin Lutfiyanto explained that the distribution of green financing shows BRI's seriousness in becoming an agent of change towards a green economy.

"Sustainable finance is important to bridge the gap in financial support for sustainability initiatives. BRI plays an important role in providing financing for debtors to transition to low-carbon and sustainable practices, as well as support the government's efforts to expand green financing solutions," he said.

As part of the Environmental, Social, and Governance (ESG) agenda, BRI consistently distributes financing to sectors that have a positive impact on the environment, such as renewable energy, environmentally friendly agriculture, water and waste management, and energy efficiency. On the other hand, BRI also continues to strengthen the sustainability governance within the company as a form of adaptation to global demands for responsible financial practices.

On the funding side, BRI recorded total wholesale funding of IDR 111.79 trillion in the first quarter of 2025, with 39.66% of them coming from ESG-based instruments. This composition includes the issuance of Green Bond in three phases with a total of IDR 13.5 trillion, as well as a sustainability-linked loan worth USD 1 billion which became the first launch in the Asian financial sector to support increased micro financing composition.

As part of an adaptive strategy in portfolio management, BRI also issued inclusive-based securities such as Medium Term Notes and Subordinated Bonds allocated for MSMEs, ultra micro corporations, and low-income individuals. With the integration of ESG principles in the entire financing and funding value chain, BRI continues to strengthen its role as a bank with a comprehensive sustainability mission.

"We believe that an active contribution to the achievement of the Sustainable Development Goals (SDGs) will have a positive impact, not only on the environment, but also in strengthening national economic resilience," concluded Solichin. (ADV)