Bank Mandiri is Committed to Increasing Green Credit Disbursement

Armfalcon.com, JAKARTA — PT Bank Mandiri (Persero) Tbk is committed to increasing green lending. This is in line with the government’s commitment to achieve net zero emissions in 2060.

Main Director of Bank Mandiri Darmawan Junaidi said the total financing needed to reduce greenhouse gas emissions reached US$281 billion. This amount will be dominated by the energy and transportation sectors amounting to US$245.9 billion.

“Going forward, Mandiri will continue to strive to increase green lending, especially in the energy sector by optimizing financing opportunities such as renewable energy-based power plants,” said Darmawan, Tuesday (23/6/2023).

In accordance with the national energy transition roadmap, Mandiri will focus on channeling financing related to electric vehicles, nickel mining, downstream from nickel mines, to battery products at Public Electric Vehicle Charging Stations (SPKLU).

Mandiri will also support the development of internal capabilities by organizing workshops to involve various parties from industry experts, debtors, regulators and other related institutions. It is hoped that new initiatives will emerge that will require financing from green credit.

Deputy Main Director of Bank Mandiri Alexandra Askandar added, Bank Mandiri strongly supports the implementation of sustainable finance in Indonesia through the distribution of green financing and sustainable financing. As of March 2023, the Company has disbursed IDR 232 trillion in sustainable financing or 25 percent of total loans bank only.

While those included in the green financing category reached IDR 109 trillion or 11.8 percent of total credit bank only. “The green financing portfolio has experienced growth compared to March 2022 of 12.6 percent,” explained Alexandra.

Some of the sectors that dominate include sustainable natural resource management of Rp. 90.6 trillion, new and renewable energy (EBT) of Rp. 8.5 trillion, products eco-efficiency Rp. 3.9 trillion and environmentally friendly transportation of Rp. 3.1 trillion.

Not only on the segment wholesale, Bank Mandiri also continues to encourage the growth of green financing in the retail segment. The company launched a micro multipurpose product and a special credit card for purchasing solar rooftops. The company also distributes battery-based electric motor vehicle loans in collaboration with subsidiary companies.

Going forward, the company sees a sizable potential for green financing in line with government programs to achieve targets net zero emissions in 2060. Therefore, BMRI continues to optimize these opportunities and continues to strive to increase the market share of sustainable financing and green financing through full support for the government’s priority programs in the low carbon economic transition.