JAKARTA – The consistency in implementing sustainable business practices has become one characteristic of a modern company that abides by the triple bottom line: profit, people, and planet. The realisation of this concept will offer opportunities for sustainable business growth in the future.

This consistency is also what makes PT Bank Rakyat Indonesia (Persero) Tbk (BBRI) become the only company in Indonesia that is granted the Sustainable Finance Award 2023. In the awarding event held by Global Finance, BRI secures the title Asia-Pacific Country Winner.

Global Finance is a renowned global financial magazine headquartered in New York, United States, and has been established for 36 years. This award is given out to companies that manage to maintain and develop sustainable financing throughout 2022.

In relation to this achievement, Sunarso, President Director of BRI, is dedicating this award for all users of BRI that had given their complete trust for the sake of company’s growth. “I present this award to all users of BRI, particularly MSME players that have supported the economy of Indonesia. This achievement will then motivate BRI to continue to deliver economic and social value to all stakeholders in Indonesia,” he added.

Throughout 2022, BRI as the supporting bank of MSME with the most extensive network in Indonesia, keeps making positive trend in sustainable business amidst the fluctuating global economic wave. It becomes one of many reasons why BRI is able to receive the Sustainable Finance Awards 2023. Other reasons why BRI is the only Indonesian company to be given this award include:

1. Strong and sustainable portfolio with the implementation of environmental, social, and governance (ESG) principles

Looking at its track record, BRI has a solid portfolio in sustainable financing according to the ESG principles. After 2019, in which BRI issued the sustainability bond of USD 500 million, last year, the company channelled 26% of the raised funds to the green sector.

In 2022, BRI issued another set of green bonds of IDR 5 trillion. Approximately 80% of the proceeds was channelled by the company to the green sector. The company is also known for the implementation of ESG principles in the social aspect.

Another initiative is the establishment of Ultra-Micro Holding. BRI has become the holding, managing two other entities, PT Pegadaian and PT Permodalan Nasional Madani (PNM), since late 2021. This strategic move is projected by the government to empower and develop ultra-micro business players, as well as enhancing financial inclusion and literacy in Indonesia.

2. Priority Credit Channelling for MSME

In 2022, the company scored credit distribution to MSME of IDR 630.7 trillion, equal to approximately 59.2% of total credits disbursed by BRI. BRI also channelled 74% of the proceeds of the sustainability bond issuance and 20% of the proceeds of the green bond issuance to the social sector.

Still in the same year, BRI also issued Sustainability-Linked Loans of USD 1 billion. The purpose is in line with BRI’s business focus in improving credit distribution to MSME, particularly the micro and ultra-micro segments.

3. Achieving Good Corporate Governance (GCG) Practices

BRI also secures several recognitions in its GCG practices, for example, Top 3 PLC (Public Limited Company) in Indonesia within the ranking of ACGS (ASEAN Corporate Governance Scorecard) by ACMF (ASEAN Capital Market Forum). Furthermore, BRI also secures the award of the Most Trusted Company in the evaluation of CGPI (Corporate Governance Perception Index).

Entering 2023, BRI also achieved another positive milestone in sustainability, as in Q1 2023, it managed to distributed IDR 80.2 trillion of credits to green businesses, equal to 7.5% of total credit distribution of BRI.

These achievements are in accordance with Global Finance’s projection. Global Finance editorial team, as quoted from Bloomberg, said Q1 2023 shows the prospect of rebound globally. Green bonds are said to increase 19.4% year-on-year (yoy). Even BNP Paribas predicts that the green bonds issuance will reach USD 600 billion of value in 2023, compared to USD 500 billion in 2021.

For the record, in this Sustainable Finance Awards 2023, Global Finance chooses champions in regional category, consisting of 57 countries and regions, whereas the global award consists of 13 categories.

In giving out the award, Global Finance is determining the awardee through strict evaluation and independent research. The criteria include policy, purpose, governance, and measurable achievements in environmental sustainability and social financing sector. (BRI/ZH)