Bank Danamon's Green Credit Disbursement Realization Reaches IDR 31.3 Trillion

Bank Danamon (Photo: Antara)

JAKARTA - PT Bank Danamon Indonesia Tbk (BDMN) reported the realization of green credit disbursement throughout 2023.

Director of Syariah & Sustainability Finance at Bank Danamon, Herry Hykmanto, reported that until the end of 2023 the realization of the disbursement of sustainability finance reached Rp31.3 trillion. Herry detailed that Rp23 trillion was channeled in the form of a small medium enterprise (SME) or MSME, while the rest was channeled in the form of renewable energy.

"Danamon has made progressive efforts towards sustainable finance by participating in various green and sustainable economic development initiatives in the country," he said in an online press conference, Monday, February 19.

Herry explained, throughout 2023, Danamon noted that the growth of the KKUB credit portfolio or the Sustainable Business Activity Category by 24 percent yoy reached 22 percent of the total bank credit.

Herry said, Danamon has also carried out various decarbonization initiatives in 2023 such as the implementation of use from the Solar Panel, LED Light, and EV Charging Stations in Danamon buildings, as well as ecosystem rejuvenation through mangrove planting.

Herry further explained that the financing of solar panels carried out by Bank Danamon had not had a significant impact.

"We have just started (financing the solar panels) so it is not too significant, but for new and renewable energy we already have an exposure of around Rp. 1.6 trillion. This is part of the Rp. 2.3 trillion that we have prepared," continued Herry.

Herry also said there were no challenges for Danamon in disbursing solar panel credit because there were still limited needs from the community.

"The challenge does not exist because the supply needs are still very limited. But we will always support EBT needs," concluded Herry.