15 September, 2022
For Immediate Release
Indonesia — On Tuesday September 13th, Bank Negara Indonesia (BNI) announced that they would not increase their credit to the coal sector. BNI Finance Director, Novita Widya Anggraini indicated that the composition of BNI’s loans to the coal sector accounted for only 2 percent of the bank’s total loan portfolio as of June 2022.
Credit figures provided by BNI at the Public Expose Live 2022 held by the Indonesian Stock Exchange (IDX) amounted to 620.403 trillion Rp. When viewed from the total loans disbursed by BNI, the mentioned 2 percent for coal amounts to more than 12.408 trillion Rp.
Percentage-based credit limits are clearly not enough. The figure of 2 percent with a total funding of more than 12 trillion is still alarmingly high. Its contribution to destroying nature and increasing social conflicts around coal dirty energy projects will continue to exacerbate the current climate crisis.
With the visible and devastating effects of the coal industry, it is not enough for BNI to only pour funding into “green and sustainable sectors”, the bank must take steps to immediately stop funding the coal sector.
At the Public Expose, BNI announced that the value of 2 percent was a small portion of their total loan portfolio. BNI also stated that the coal sector is not an ideal investment, but will gradually be reduced in line with government policies.
Suriadi Darmoko, Finance Campaigner 350 Indonesia says,
“The credit value of 2 percent this year is different from last year. If the credit disbursed by BNI continues to grow, BNI’s funding for coal will also continue to rise. So the figure of 2 percent cannot be claimed as a limit. This only shows the portion of the total credit, which in nominal terms will continue to increase.
Can BNI explain the damage caused by the 2 percent or 12 trillion Rp funding issued to coal developments? Is it in line with the environmental, social, and governance (ESG) commitments to the coal industry?
If there really is no expansion plan for BNI in the coal industry, where can this policy be seen? We are yet to see if the document exists and we urge BNI to immediately create a roadmap to end their funding of coal and share this with the public.”
- Drue Slatter, [email protected], +81 8075299441
- Suriadi Darmoko, Finance Campaigner 350 Indonesia, 0857 3743 9019