Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable Finance

Social Achievements

• Launched Green Saving program to encourage the use of renewable energy.

Governance Achievements

• Continued implementation of Good Corporate Governance (GCG) principles.

Climate Goals & Targets

Environmental Challenges

• Increased competition in fund raising and credit distribution.
• Slow loan disbursement leading to lower net interest income.
• Rising inflation and interest rates.

Mitigation Strategies

• Issued Rp500 billion in subordinated bonds to strengthen capital.
• Maximized liquidity management by placing excess funds in securities and reverse repos.
• Prioritized credit to sectors with good prospects and adequate collateral.
• Developed digital banking services through SimobiPlus.
• Collaborated with insurance companies and investment managers to sell mutual funds and bancassurance products.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Green Saving program

Awards & Recognition

• MOST POPULAR DIGITAL FINANCIAL BRAND in QR IMPLEMENTATION (3rd Indonesia’s Most Popular Digital Financial Brands Awards 2022)
• 2nd Rank Bank Umum Konvensional (KBMI) 2
• 1st Rank Kartu Kredit – (KBMI) 2
• 3rd Simobi Plus – Mobile Banking (KBMI) 2
• Best Sharia unit Bank in Indonesia Syariah Awards 2022
• Excellence Good Corporate Governance Implementation
• 1st Rank Tabungan Simas Gold – (KBMI) 2
• 1st The Best Finance Bank Public Company
• Peduli Gerakan Literasi dan Taman Bacaan
• Terbaik 1 BPS BPIH Pertumbuhan Pendaftaran Haji Terbaik 2022
• Indonesia Best Bank 2022
• The 4th Ranking of Indonesia The Best Public Companies Based on WAI™ (Wealth Added Index) 2022
• The Best Bank in Financial Resilience
• The Best Bank in Digital Services

Environmental Metrics

ESG Focus Areas

• Economic
• Social
• Environmental

Environmental Achievements

• Initiated a pilot project for installing solar panels in 2 Surabaya branch offices, Solo branch office, and Kapt. Soebijanto BSD sub-branch office to reduce energy consumption (fuel, electricity, water) and paper usage.

Social Achievements

• Disbursed Rp1.87 trillion in credit to MSMEs (conventional and UUS), including People’s Business Credit (KUR) in support of government programs.
• Implemented employee competency development programs, particularly related to sustainability principles; total training hours reached approximately 406,645.51 hours (average 76.78 hours/employee).
• Organized education programs for community capacity building, skills enhancement, and welfare improvement.
• Realization of Community and Social CSER Rp2.48 billion (Conventional) and Rp331.5 million (UUS).
• Realization of CSER in Education Rp157.29 million (Conventional) and Rp21.53 million (UUS).

Governance Achievements

• Maintained good corporate governance (GCG) practices, achieving a “Good” rating in the self-assessment.
• Ensured compliance with regulations and implemented prudential principles and corporate governance.
• Implemented anti-fraud, anti-corruption, and AML-CFT policies.

Climate Goals & Targets

Environmental Challenges

• Increased BI 7-day Reverse Repo Rate (BI7DRR) benchmark interest rate leading to increased deposit interest rates.
• High non-performing loans (NPL) at the end of 2022 (7.99%).
• Economic and political uncertainties in Indonesia and other countries impacting export-import activities.

Mitigation Strategies

• Gradually and selectively raised deposit interest rates.
• Increased reserves and sought resolution measures for non-performing loans (NPL); reduced gross NPL ratio to 1.53% by the end of 2023.
• Focused export-import activities on collection transactions and increased interest income through discounts and negotiations.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: POJK 29/POJK.04/2016, POJK 51/POJK.03/2017, SEOJK 16/SEOJK.04/2021

Certifications: ISO 27001 (Information Security Management System for SimobiPlus, Internet Banking, Pega System CS, & Pega Loan Origination System)

Sustainable Products & Innovation

• Electric vehicle financing products
• Green Saving program

Awards & Recognition

• 3rd Indonesia Syariah Awards 2023
• Top Sharia Business Unit - KBMI 2 Category
• LinkedIn Talent Award 2022
• 4th Indonesia Top Bank Awards 2023
• Indonesia Digital Customer Engagement Champion 2023
• Indonesia Best Bank Award 2023
• Best Bank Performance of MSMEs Loans Award 2023
• Human Resources Excellence Awards 2023
• 12th Sharia Award 2023
• 12th Sharia Award 2023