INFO TEMPO – The Sustainable Finance Framework (SFF) issued by PT Bank Tabungan Negara (Persero) Tbk, or BTN, has been evaluated by Sustainable Fitch through a Second Party Opinion (SPO) on Friday, February 21, 2025. It received an “Excellent” rating or aligned with the principles of sustainable finance, according to a press release received by Tempo on Sunday, February 23, 2025.
BTN uses the SFF as a guideline in allocating funds to projects that directly benefit the society and the environment. According to Sustainable Fitch, the BTN-issued SFF has the potential to significantly improve the environment and the society, giving a clear and measurable positive impact.
“We expect the green projects that BTN will finance to have an impact on climate change mitigation in the energy, transportation and real estate sectors. In addition, the social projects carried out by BTN can provide affordable homes for the MBR, while maximizing employment and providing access to drinking water in areas with minimal infrastructure,” Sustainable Fitch stated in a written statement.
BTN President Director Nixon LP Napitupulu said the title will serve as a reminder for the company to continue improving its efforts to support sustainable development in Indonesia, especially, continued Nixon, in carrying out BTN’s role as a market leader in financing home ownership for low-income people (MBR), in order to support the Three Million Houses Program promoted by President Prabowo Subianto.
“With the issuance of the BTN Sustainable Finance Framework, BTN has achieved a significant milestone and strengthened our commitment to sustainability-based development in Indonesia. We greatly appreciate Sustainable Fitch for recognizing “Excellent” in our Framework, which is considered very much in line with best practice in the market,” said Nixon in Jakarta, on Friday, February 21.
BTN, Nixon added, also continues to strive to realize the implementation of the Principles for Responsible Banking. This is also in line with the company’s membership position in the United Nations Environment Program Financial Initiative (UNEP FI), one of the United Nations agencies to encourage the role of the financial industry in environmental conservation. BTN is the first Indonesian state-owned bank to sign the principles.
Meanwhile, Sustainable Fitch gave BTN’s SSF a Second Party Opinion (SPO) or rating of “Excellent” because it is in line with the Green Bond Principles, Social Bond Principles, and Sustainability Bond Guidelines issued by the International Capital Market Association.
In addition, BTN’s SSF is also considered in line with the Green Loan Principles and Social Loan Principles issued by the Loan Market Association (LMA), Asia Pacific Loan Market Association (APLMA), and Loan Syndications & Trading Association (LSTA).
In its efforts to design the SFF for the first time, BTN received support from Standard Chartered Bank as the Sole Sustainability Structuring Bank or financial institution that provides advice and input in terms of designing a sustainable financing framework.
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What are the key principles outlined in BTN’s Sustainable Finance Framework (SFF)?
Table of Contents
- 1. What are the key principles outlined in BTN’s Sustainable Finance Framework (SFF)?
- 2. Interview with Nixon LP napitupulu, President Director of BTN: Revolutionizing Sustainable Finance in Indonesia
- 3. Introducing Nixon LP Napitupulu
- 4. BTN’s Milestone: The Sustainable Finance Framework
- 5. SFF’s Impact on Indonesia
- 6. Aligning with the Three Million Houses Program
- 7. BTN’s Role in the UNEP FI
- 8. A Challenging Yet Rewarding Journey
- 9. Thoughts on the Future of Sustainable Finance
Interview with Nixon LP napitupulu, President Director of BTN: Revolutionizing Sustainable Finance in Indonesia
Introducing Nixon LP Napitupulu
Nixon LP napitupulu, a renowned figure in Indonesia’s financial sector, currently serves as the President Director of PT Bank Tabungan Negara (Persero) Tbk, frequently enough referred to as BTN. His leadership has been instrumental in positioning BTN at the forefront of sustainable finance in indonesia.
BTN’s Milestone: The Sustainable Finance Framework
Archyde: Could you tell our readers about the significance of BTN issuing its Sustainable Finance Framework (SFF) and the recent Second Party Opinion (SPO) from sustainable Fitch?
Nixon LP napitupulu: The issuance of our Sustainable Finance Framework is a meaningful milestone for BTN. It demonstrates our commitment to sustainable development and guides us in allocating funds to projects that truly benefit society and the surroundings. The “Excellent” rating from Sustainable Fitch,in line with the principles of sustainable finance,validates our approach and encourages us to continue improving.
SFF’s Impact on Indonesia
Archyde: How does BTN’s SFF translate into real-world impact for Indonesia, notably in sectors like energy, transportation, and real estate?
Nixon LP Napitupulu: BTN-issued SFF has the potential to considerably improve the environment and society in Indonesia. We aim to finance green projects that mitigate climate change in targeted sectors. Moreover, our social projects will contribute to providing affordable homes for low-income people, creating jobs, and improving access to basic infrastructure like clean water.
Aligning with the Three Million Houses Program
Archyde: How does BTN’s SFF contribute to the government’s Three Million Houses Program?
Nixon LP Napitupulu: Our SFF supports BTN’s role as a market leader in financing homeownership for low-income people. By providing affordable housing loans, we align with President Prabowo Subianto’s Three Million Houses Program, thereby contributing to the government’s vision of accessible and sustainable housing for all.
BTN’s Role in the UNEP FI
Archyde: As the first Indonesian state-owned bank to sign the UNEP FI Principles for Responsible Banking, what does this mean for BTN and its customers?
Nixon LP Napitupulu: Signing the UNEP FI Principles for Responsible Banking reaffirms our commitment to sustainability. it provides guidance on addressing climate change,creating positive impact,and responsible alles our banking activities. This benefits our customers, who can trust that their bank is actively promoting sustainable development.
A Challenging Yet Rewarding Journey
Archyde: What challenges has BTN faced in designing the SFF, and how has it overcome them?
Nixon LP Napitupulu: Designing the SFF required us to navigate complex financial and environmental considerations. Collaborating with Standard Chartered Bank as our Sole Sustainability Structuring Bank was invaluable. Together, we overcome challenges by learning, adapting, and seeking the best possible outcomes for both BTN and the communities we serve.
Thoughts on the Future of Sustainable Finance
Archyde: With the successful launch of BTN’s SFF, what do you envision for the future of sustainable finance in Indonesia?
Nixon LP Napitupulu: I believe the future of sustainable finance in Indonesia is shining. BTN’s success with the SFF sets a strong precedent for other financial institutions. I expect to see increased investment in green and social projects, greater collaboration between the public and private sectors, and more innovative financial products promoting sustainability.