Major Banks Boost Green Loans, Bank Mandiri, BCA, and BNI Report Strong Growth

Leading Indonesian banks such as Bank Mandiri (BMRI), Bank Central Asia (BCA), and Bank Negara Indonesia (BNI) recorded strong green loan growth in 2024, driven by financing for sustainable projects and energy transition initiatives.

Bank Mandiri reported green loan disbursement of IDR 149 trillion, marking a 15.50% year-on-year (yoy) increase from IDR 129 trillion in 2023. The majority of this financing went to sustainable agriculture (IDR 111.4 trillion), followed by renewable energy (IDR 11.8 trillion), eco-efficient products (IDR 10.6 trillion), clean transportation (IDR 7.5 trillion), and green buildings (IDR 6.2 trillion). Additionally, IDR 1.1 trillion was allocated for sustainable water management.

"We remain committed to driving sustainable economic growth through innovation and broader collaboration," said Bank Mandiri President Director, Darmawan Junaidi.

Meanwhile, Bank Mandiri’s fossil energy financing declined from IDR 24 trillion in 2023 to IDR 21 trillion in 2024.

BCA Sees Double-Digit Growth in Green Loans

As Indonesia’s largest private bank, BCA recorded significant green loan growth, disbursing IDR 99 trillion in 2024, up 13.5% yoy from IDR 87 trillion in 2023.

BCA President Director Jahja Setiaatmadja highlighted that electric vehicle (EV) loans were a key driver, surging 84.2% yoy to IDR 2.3 trillion. Additionally, sustainability linked loans (SLLs) reached IDR 1 trillion, tripling from the previous year.

"BCA continues to strengthen its commitment to Environmental, Social, and Governance (ESG) principles, including carbon footprint assessments for our operations," Jahja stated.

BCA’s estimated carbon emission reduction in 2024 reached 4,216 tons of CO2 equivalent, achieved through waste management, digital banking, and green building initiatives.

Overall, BCA’s sustainable financing, including green loans, totaled IDR 229 trillion, contributing 24.8% of its total loan portfolio.

BNI Expands Green Financing, Focuses on Natural Resource Management and Renewable Energy

BNI disbursed IDR 73.4 trillion in green loans in 2024, reflecting an 8.1% yoy growth from IDR 67.9 trillion in 2023.

BNI’s green loan allocations included IDR 32.4 trillion for sustainable land and natural resource management, IDR 25.1 trillion for water and wastewater management, IDR 13 trillion for renewable energy, and IDR 2.9 trillion for pollution prevention.

"BNI is committed to supporting green transition by increasing sustainability linked loans, which reached IDR 6 trillion by December 2024," said BNI Risk Management Director, David Pirzada.

BNI’s total sustainable financing, including green loans, amounted to IDR 190.5 trillion, equivalent to 25% of its total loan portfolio in 2024.

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