BSI Realizes NZE Through Palm Plasma Partner Program For Farmers

Agriculture (Photo: Antara)

JAKARTA - PT Bank Syariah Indonesia Tbk (BSI) consistently supports the government's program in realizing net zero emissions (NZE) with environmentally friendly financing that targets the agricultural sector through BSI Mitra Plasma Sawit.

SVP SME Business BSI Risqi Widayat said that the BSI Mitra Plasma Sawit' program, as part of SME financing products in the agricultural field, is aimed at palm plasma farmers who are registered as members of the plasma cooperative fostered by palm kernel companies.

This product (BSI Mitra Plasma Sawit) can be used to finance project financing for development and planting for new gardens or replanting or rejuvenation. This will make it easier for oil palm plasma farmers to develop their land to be productive," said Risqi quoting Antara.

Risqi explained that the financing through the program was given to plasma farmers who are members of assisted cooperatives from core companies with partnership patterns.

One of the criteria for core companies that can become offtakers is that Indonesia Sustainable Palm Oil (ISPO) and/or Roundtable on Sustainable Palm Oil (RSPO) certification.

As is known, the two certifications are designed to ensure that the palm oil produced has gone through the production process in a manner responsible for environmental and social aspects of the surrounding community.

The two certifications, both ISPO and RSPO, aim to reduce the negative impact of the palm oil industry on the environment and the lives of the surrounding community.

According to the company, the product of BSI Mitra Plasma Sawit also has a role to play in developing the economy and living standards of farmers. In presenting these products, the company has referred to regulations in implementing sustainability principles.

Risqi said the company implemented eight sustainability principles in accordance with regulations from the Financial Services Authority (OJK). The principle of sustainability starts from responsible investment, an investment approach that considers economic, social, environmental, and governance factors in investment decision making.

"That way, it is hoped that BSI can manage risks better and produce sustainable long-term benefits," he said.

The company noted that BSI has distributed financing for the SME segment of IDR 19.35 trillion, which is divided into various sectors. Of this amount, the agricultural sector absorbs around IDR 5.53 trillion or 28.6 percent of the company's total SME financing portfolio for around 60 thousand farmers and 197 cooperatives.

According to Risqi, BSI will also continue to be aggressive in channeling financing for the agricultural sector in 2024 by developing ecosystem schemes. This is because agriculture is included in the leading sector with high potential for financing in the SME segment with a business scheme in accordance with sharia principles and environmentally friendly.