Active In Green Transition, BBNI Shares Predicted IDR 6,700 Per Sheet

Shares (Photo: Antara)

JAKARTA - The share price of PT Bank Negara Indonesia (Persero) Tbk or BBNI will reach IDR 6,700 per share thanks to the bank's initiative to encourage the green transition.

Ciptadana Sekuritas analyst Erni Marsella highlighted that BNI targets the identification of sustainable financing bases in various industries such as palm oil, renewable energy, social forests, and green bonds since 2019.

He also noted that responsive financing for sustainable business activities, including a green portfolio, reached IDR 188 trillion or 26 percent of total loans.

"The issuance of green bonds has also started in 2022 amounting to IDR 5 trillion, with 87 percent of the proceeds allocated according to the green project," he quoted Antara as saying.

With these various initiatives, his party pinned a recommendation to buy BNI shares with a target price of IDR 6,700 per share.

As a state-owned bank, BNI actively supports the green transition. BNI has a credit platform called the Sustainable Linked Loan (SLL) with the realization until September 2024 reaching IDR 5.5 trillion for several sectors including agrifood, cement manufacturing, steel, and packaging.

On the other hand, the value of BNI's green loan portfolio is IDR 29.5 trillion as of the end of 2020. When compared to BNI's disbursed credit which reached IDR 553 trillion, the contribution was only 5 percent. However, within 4 years, the value of BNI's green credit portfolio reached IDR 70.9 trillion or 10 percent of the total bank credit as of September 2024.

Thus, BNI's green credit growth reached 26 percent per year or consistently grew double digits. Several sectors that contributed to BNI's green credit growth were for the new and renewable energy (EBT) sector or known as renewable energy, green buildings and pollution prevention.

Referring to official data revealed by the company, credit for the EBT sector has grown 21.4 percent per year since 2020. At the same time, loans disbursed to green buildings grew 78 percent per year and for the pollution prevention sector increased rapidly with a rate of 109 percent per year.