JAKARTA - PT Bank Central Asia Tbk (BBCA) is optimistic that financing for the sustainability sector (Environment Social Governance / ESG) will grow in line with the government's orientation towards net zero emission by 2060. Currently, the financing portion to this sector almost reached 25% from the total financing of IDR 735.9 trillion.

Vera Eve Lim, Chief Financial Officer (CFO) of PT Bank Central Asia Tbk (BBCA) said that the growth in financing for the sustainability sector has the potential to continue to increase in line with the expansion of the business sub-sectors to be financed. "I have seen that in the last three years, financing has increased quite sharply, namely renewable energy areas, more efficient energy and business lines that support a better environment, the financing has also increased," she said in an interview with IDNFinancials.com, yesterday (2/8).

According to her, BCA's financing for the sustainability sector has reached around IDR 181 trillion in the first semester of 2023. This number continues to increase compared to five years ago, when this sector received minimal attention from bank financing.

In the next three to five years, she said, it would continue to increase, although it would not reach 50% of the total credit that would be distributed because it was shared with other loans, such as consumer credit, namely, Home Ownership Loans (KPR), Motor Vehicle Loans (KKB) and others.

"Demand for financing the sustainability sector has also continued to increase. Of course, this also needs to be supported by government policies," she said.

According to her, BCA has debtors of 450 companies that deserve sustainable financing in line with the implementation of the Indonesian Green Taxonomy. However, in order to maximize financing, inter-ministerial policies are needed so that companies are more involved in energy that is more environmentally friendly.

"If it is integrated and the OJK also requires banks to assess green or non-green sectors, it will create a better synergy," she said. (LK/LM)