Bank BTPN is Ready to Help Corporate Customers Transition Towards a Green Economy through ESG Deposits

The concept of a green economy is becoming one of the main concerns of the government of the Republic of Indonesia in growing the economy in a sustainable manner.^[1] PT Bank BTPN Tbk (Bank BTPN), is committed to continuing to strive to bring about meaningful change in achieving targets net zero emissions through a variety of sustainable financial solutions. One of the ways in which this commitment is realized is by providing innovative ESG Deposit products for Bank BTPN corporate customers.

“As a universal bank, Bank BTPN consistently brings meaningful growth to all levels of society in Indonesia. For this reason, Bank BTPN presents financial solutions that have a positive impact and can help achieve business sustainability in Indonesia, one of which is by enabling corporate customers to transition to a green economy through ESG Deposit financial instruments. "This financial solution is part of the company's program to support the Indonesian government's efforts to implement sustainable finance and achieve the target of reducing carbon emissions by 31,89 percent by 2030," said Nathan Christianto, Head of Wholesale Commercial and Transaction Banking at Bank BTPN.

ESG Deposit not only offers financial instruments with optimal returns for corporate customers, but also helps them realize the company's sustainable initiatives through deposit products that are strategically allocated to initiatives, projects and activities that contribute to supporting sustainable development activities in the corridor. Environmental, Social, and Governance (ESG).

To join this ESG Deposit, partners and corporate customers can invest funds starting from USD 1 million (or the equivalent of around IDR 15,5 billion) with a flexible term, namely from 20 days to 1 year. ESG Deposits This is fixed deposit based with a choice of IDR and USD currencies.

“Use of funds from ESG Deposits Later it will be used to fund new and/or existing sustainability initiatives, projects and activities that need to be funded and in accordance with the rules set out in the ESG Deposit framework, and can be transparently accessed by customers. "To evaluate funding that has a social impact, there are several indicators that must be met, such as job creation, food security and a sustainable food system, affordable basic infrastructure, etc.," added Nathan.

Since its introduction at the end of 2023, Bank BTPN has started accepting ESG Deposit placements from several well-known well-known corporations such as PT Mitsubishi Krama Yudha Motors & Manufacturing, PT Senayan Trikarya Sempana, and PT Abadi Tambah Mulia Internasional. This positive interest is considered to be in line with the increasing awareness of corporations in Indonesia regarding the importance of focusing on sustainable and responsible business practices.

A series of strategic steps by Bank BTPN to support sustainability

Apart from providing ESG Deposits, Bank BTPN also proactively provides a positive impact on social and environmental issues through a diversified sustainable financing portfolio. Bank BTPN has disbursed sustainable financing of IDR 13,74 trillion until the end of December 2023, which includes green investment, green loans or green loans, social loans, and mutual fund loans related to ESG sustainability for various sustainable business activities with classifications determined in POJK 51[2]. In this way, Bank BTPN is able to provide a wide range of solutions for customers in realizing efforts towards a low-carbon economy and creating a more meaningful life for all.

"As a driver of change, Bank BTPN will continue to prioritize environmentally friendly principles in every financial product offering and business operations. "Bank BTPN believes that sustainability efforts play an important role in encouraging economic prosperity and determining the quality of life for future generations," concluded Nathan.