tirto.id – The Indonesian Responsibank Coalition questioned the seriousness of national banks regarding sustainable finance due to the global ecological crisis that must be implemented in Indonesia immediately. It is because national banks are still providing loans for the coal industry.

Ah Maftuchan, Coordinator of the Indonesian Responsibank Coalition, a coalition of community organizations promoting the implementation of sustainable finance, said that referring to a report by the Urgewald institution based in Germany shows that 6 (six) national banks are listed as still providing loans to coal companies listed on the Global Coal Exit List (GCEL). ) 2020, during the period October 2018 to October 2020. The six national banks include Bank Mandiri, BNI, BRI, BCA, BTN, and Indonesia Eximbank.

“Total loans for the coal industry from October 2018-October 2020 by national banks amounted to USD 6.29 billion or IDR 89 trillion, and underwriting or underwriting was USD 2.64 billion or IDR 16.6 trillion,” Maftuchan said in a release received by Tirto, Monday (1/3/2021).

He added, “The six national banks provide funding to coal mining companies and the State Electricity Company (PLN), which also use coal as electricity fuel.”

Supposedly, said Maftuchan, financial institutions (banks and non-banks) should immediately shift their funding to sustainable industries. Moreover, coal is one of the energy-producing emissions, and many global investors have stated that they will no longer finance coal, both upstream and coal-fired power plants.

Due to its destructive power to the environment and to produce Greenhouse Gas (GHG) emissions which cause an increase in the earth’s temperature and cause climate change.

The Financial Services Authority (OJK) has currently issued a Phase II Sustainable Finance Roadmap. It should be a reference for financial institutions to carry out lending practices to companies that carry out sustainable business practices by applying environmental protection principles, fulfillment of social aspects, and implementation of good corporate governance.

“The financial industry is not only a profit-oriented business entity but as a development actor,” said Maftuchan, who is also the Executive Director of The PRAKARSA.
Therefore, he said, the financial industry must stop providing credit to companies that have been proven to be carrying out unsustainable business practices, namely businesses that damage the environment, are not socially responsible, and are involved in corrupt practices and tax evasion.

Meanwhile, WALHI National Executive Campaign Coordinator, Dwi Sawung, said that “the coal sector is still a source of income for the Indonesian financial industry, even though it was the largest non-performing loan in the past few years.

“The Indonesian financial industry still does not pay attention to environmental sustainability. The financial industry in Indonesia must immediately prepare a map and policy for terminating investment or lending to the coal dirty energy industry,” he said.

Aryanto Nugroho, the National Coordinator for Publish What You Pay (PWYP) Indonesia, added that the implementation of the sustainable finance roadmap must be technically clear and participatory, which involves all parties who have an interest in renewable energy. “This is so that the implementation of sustainable industrial financing can be carried out comprehensively and integratively,” he said.

Source: Tirto