Bank DBS Indonesia adds Yayasan Tangan Pengharapan as new partner to expand contribution options of Green Savings account

Environmental, social, and governance (ESG) trends are indicated by global asset growth data over the period Q1 2022 to Q1 2023. The growth rate of global sustainable funds was 7.5%, higher than the overall growth of global funds. The results of the Mandiri Institute survey in 2022 listed climate change (84%), poverty/inequality (59%), deforestation (57%), and living wage (50%) as ESG issues that attract investors. The trends indicate that consumers have concerns for and interest in ESG-related issues and a willingness to actively contribute.

Consumer Banking Director, PT Bank DBS Indonesia Rudy Tandjung said, "Bank DBS Indonesia's commitment to sustainability issues is based on three key pillars: Responsible Banking – to deliver sustainable banking products; Responsible Business Practices – our efforts to run business operations that reduce our carbon footprint, and Impact Beyond Banking – to underscore our commitment to making a positive impact on the community and the wider public. We have 16 different ESG-based products such as the Green Savings account as well as investment products, including mutual funds, for all consumer banking segments. Our commitment to green products is a manifestation of the first pillar and supports DBS Bank's vision to be the 'Best Bank for a Better World'."

For ESG-based investment products, Bank DBS Indonesia offers 9 sukuk/green bonds options that are quite attractive to customers with sales/AUM reaching up to Rp1.8 trillion year-to-date August 2023. In addition, the range of ESG-based mutual fund products is quite comprehensive and represents around 30% of the total ESG mutual funds in the industry today, with funds under management accounting for around 17.5% of the total AUM of ESG mutual funds in the industry.

The Green Savings account is a product that brings together savings and contributions to social and environmental issues in Indonesia. In less than a year, the number of Green Savings customers has increased by 60 percent from December 2022 to August 2023. Since its launch in 2021, Green Savings has generated a total contribution of more than Rp1.47 billion. To date, Green Savings accounts have supported more than 750 cocoa farmers in achieving 5 out of the 10 steps of cocoa processing and increasing their income by threefold.

PT Bank DBS Indonesia Head of Segmentation, Liabilities, and Mortgage Natalina Syabana explained, "As the only product that brings together savings and social environmental contributions in Indonesia, the Green Savings account has two advantages. First, as a seamless multifunctional savings product, it allows customers to contribute simply by saving money without extra time and cost so that customers can 'Live more, Bank less'. Second, 50% of the competitive interest amount received will be debited for contribution to social partners. To maintain transparency in the distribution of contributions, customers will receive periodic updates on the utilisation of their contribution and check the amount of contribution from the savings account’s interest during the monthly account mutation."

The journey of the Green Savings account is made possible by the support of and warm welcome from customers, which encouraged Bank DBS Indonesia to expand the contribution to thousands of the next generation of children in 15 remote parts of Indonesia. They deserve a true "green" life in the sense of peace and prosperity so that they can realise big dreams for generations to come, and reduce social inequality in those areas. "As a purpose-driven bank, we hope that the Green Savings account from Bank DBS Indonesia can have a positive impact and support a more sustainable education system for Indonesian children," Natalina continued.

Plans for the utilisation of Green Savings account contributions include the procurement of motorbikes for teachers and students in Papua and Mentawai, proper school facilities such as computers in Sumba, Kupang, Atambua, and early childhood education (PAUD) educational tools on the Island of Halmahera, West Kalimantan, Sumba, Papua, Merauke, and surrounding areas.

Yayasan Tangan Pengharapan, Bank DBS Indonesia's new Green Savings account partner, is a foundation established in 2007 with the aim of helping Indonesians come out of hardship and poverty, ending inequality, and tackling the high cost of education. Yayasan Tangan Pengapan focuses on education, community empowerment, and health through various programmes such as boarding schools, Feeding and Learning Centres, empowerment of teachers in remote areas, and Mobile Clinics.

Commenting on the collaboration, Yayasan Tangan Pengharapan Field Assessor Raja Sigalingging stated, "We are very excited about the collaboration with Bank DBS Indonesia for the Green Savings account. The distribution of donations from Bank DBS Indonesia customers will be very useful in improving the welfare of children and youths in remote parts of Indonesia. It is our hope that this collaboration will be a good start in creating greater positive change in the community and realising a brighter future for Indonesia's youths."

For more information about Green Savings account, please visit our website go.dbs.com/id-greensavings

DBS Bank's commitment to sustainability issues has earned the bank local and international awards, including Euromoney’s Awards for Excellence 2023, World's Best Bank for Corporate Responsibility; Warta Ekonomi’s Indonesia's Most Acclaimed Companies 2023, Indonesia's Most Prestigious Companies 2023 with Outstanding Business Development and Increase Social Impact, and MIX Marcomm Indonesia's Best Corporate Sustainability Initiatives 2022 for the Responsible Business Practices (Green Savings) category.

About DBS
DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world.

Recognised for its global leadership, DBS has been named “World’s Best Bank” by Global Finance, “World’s Best Bank” by Euromoney and “Global Bank of the Year” by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank”by Euromoney and the world’s “Most Innovative in Digital Banking” by The Banker. In addition, DBS has been accorded the “Safest Bank in Asia”award by Global Finance for 15 consecutive years from 2009 to 2023.

DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets.

DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by supporting social enterprises: businesses with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping communities with future-ready skills and building food resilience.

With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.