One of the factors that support the achievement of the largest micro, small and medium enterprise (MSME) bank in Indonesia is that BRI actively raises awareness regarding ESG for BRI employees and customers/borrowers. This is operated through various education and socialization programs related to sustainability and ESG. In terms of performance, BRI credit, which is classified as a sustainable business activity, grew 14.1 percent and a credit value of Rp 562 trillion, which was recorded higher in this category compared to peers.

The credit distribution to sustainable business activities at BRI consists of two main pillars, namely social financing and green financing. Social financing at BRI is manifested in the distribution of MSME loans, particularly micro loans worth Rp 488.6 trillion, as well as super-micro KUR distribution for housewives and BRILink agents, which until now has reached 504 thousand agents.

Meanwhile, the commitment to implement green financing practices at BRI is reflected in the distribution of credit to the renewable energy sector, credit for pollution prevention, credit for eco-friendly transportation and credit for green buildings.

In the relation to green financing practices, BRI was also the first bank in Southeast Asia to issue sustainability bonds in 2019. SEVP Treasury & Global Services BRI Listiarini Dewajanti said investors were very interested in sustainability bonds, as evidenced from the fact that their orders were oversubscribed by 8.4 times, from US $500 million to $ 3.3 billion. BRI's Sustainability Bond is also the first to be published by a BUMN in Indonesia.

In accordance with the purpose of its issuance, all funds obtained from the issuance of BRI Sustainability Bonds have been used by the company for the social-oriented and environmental-oriented activities. From the total US$ 500 million, US$ 422 million or 84.4 percent of the total funds obtained were used for social activities, and US$ 78 million or 15.6 percent was used for environmental-oriented activities.

Funds used for social activities, through the distribution of BRI's Kupedes and KUR, have succeeded in creating jobs in more than 245 thousand MSME agents throughout Indonesia. In addition, through the distribution of subsidized KPRs, BRI Sustainability Bonds have provided access to 1,200 people to have proper housing.

Funds obtained from the issuance of the Sustainability Bond are also used to finance eco-friendly projects such as Green Transportation and Green Building, including for the construction of LRT projects.

In the last two years, the sustainability bond market has become increasingly attractive and it is projected that the issuance of ESG financing instruments will grow to reach US$ 11 trillion in 2025. Assuming a growth trend of 15 percent per year, ESG Asset Under Management (AUM) is projected to reach more than USD 53 trillion in 2025. In addition, throughout 2019 to 2020, the growth of sustainability bond issuance reached 151 percent, from US$ 72.3 billion in 2019 to US$ 109.1 billion in 2020 as reported by Bloomberg.

"The purpose of using the proceeds from BRI's Sustainability Bonds is able to support the achievement of sustainable development goals (SDGs), including to create decent work and economic growth, reduce inequalities, as well as sustainable cities and communities." concluded Listiarini closing the interview to the media.

Keywords: BRI, ESG, Sustainable Finance, Sustainable Finance, Green Project, Social Project

Information about BANK BRI can be accessed through the website www.bri.co.id

For further information, please contact:

Aestika Oryza Gunarto

Corporate Secretary

Tel. : 021-575-1966

Fax. : 021-570-091

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