Implementing ESG, Citi Indonesia Plans To Reduce Funding Porition To Coal

ESG (Photo; Unsplash)

JAKARTA - Citi Indonesia plans to reduce funding to the coal sector and switch to a more varied mining commodity sector to encourage the implementation of Environmental, Social and Governance (ESG).

Head of Integrated Corporate of Bank Citi Indonesia Anthonius Sehonamin said the focus of mining funding would shift to several other potential commodities such as gold, copper, nickel, bauxite and aluminum oxides.

"So if you ask if we reduce (defense), actually we don't, we just go up. It's just that there is a bit of shift, where maybe the focus was, 10 years ago coal (coal), but now there are more spectrums of commodity," said Anthonius quoting Antara, Friday, September 22.

Funding for mining companies is actually considered to be increasing considering Indonesia's vision and prospects for building an electric vehicle (EV) ecosystem in the next few years.

Until now, the dependence of many sectors on coal as an energy source is still a major challenge in implementing the ESG perfectly. According to Anthonius, it will take at least 20-30 years to be able to escape mining needs in the coal sector.

"So maybe if the coal one is slowly reduced, but that doesn't mean we are not committed to coal. We still have projects in that sector," he said.

On the same occasion, Citi Indonesia's Head of Global Network Banking Wit Oemar also said that so far Citi Indonesia's funding of the mining sector is still dominated by local companies.

"Most of the mines (companies) are still local," said Wit Oemar.

Citi Indonesia's commitment to reducing funding in the coal sector is in line with the vision of downstreaming of the electric vehicle (EV) ecosystem echoed by President Joko Widodo.

The government has targeted downstreaming by making technology transfers and utilizing new renewable energy sources (EBT) to minimize environmental impacts.