JAKARTA - PT Bank Negara Indonesia (Persero) Tbk (BBNI) or BNI is increasingly optimistic to encourage green financing performance in line with the effective issuance of green bonds worth IDR 5 trillion.

BNI's Corporate Secretary Mucharom said that BNI's green financing performance was still growing positively in line with sustainable credit agreements that were running aggressively in the MSME and corporate segments in the first half of 2022.

"We are grateful and of course very proud that we have succeeded in issuing green bonds. This pride is even more complete because of the extraordinary response and appreciation by oversubscribed up to four times. Of course, the funds raised will be used directly to encourage stronger green banking performance", he said, quoted by Antara, Thursday, June 23.

Mucharom explained that BNI's green portfolio reached IDR 170.5 trillion per quarter I-2022. This value accounts for 28.9 percent of BNI's total loan portfolio. This green financing, he continued, was mainly provided for the needs of the community's social and economic development through MSME financing with a total portfolio reaching IDR 115.2 trillion.

"The rest is used for the needs of developing a green environmental ecosystem, new renewable energy of IDR 10.3 trillion, and pollution management of IDR 6.8 trillion, and water and waste management of IDR 23.3 trillion", he said.

He said green banking is the future of national banking. Moreover, the economic concept that will be used in the future is a circular economy, namely an economic ecosystem that prioritizes the recycling of various wastes as production raw materials to reduce the excessive exploitation of natural commodities.

This economic model puts forward efficiency to reduce the disposal of the house effect.

Mucharom said BNI would finance and refinance projects in the Environmentally Friendly Business Activities (KUBL) category related to renewable energy, energy efficiency, processing waste into energy and waste management, use of natural resources, and sustainable land use.

"Funds from the green bond will also be channeled to land and water biodiversity conservation projects, environmentally-friendly transportation, sustainable water, and wastewater management, climate change adaptation, environmentally friendly buildings, and sustainable agriculture, taking into account OJK Regulation No. 60/POJK. 04/2017 concerning the Issuance and Requirements for Green Bonds", he said.


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