Bank DBS Indonesia shares commitment to supporting sustainable development programs in Indonesia | Bahasa
Contributing to efforts to address environmental and social issues through sustainable financial solutions
Supporting social entrepreneurs in tackling environmental and social issues in the country
Indonesia has given a commitment to reducing greenhouse gas emissions. However, transition to low-carbon development and net-zero emissions poses high risks and could lead to high costs, especially for investors and entrepreneurs. According to Bappenas, Indonesia needs Rp67,803 trillion worth of financing and investment in the sustainable sector by 2030.
This presents an opportunity for the financial services industry to play a part as more and more investors are concentrating their investments in investment products and sustainable financing. In Asia, several countries, including Indonesia, have begun adopting sustainable finance. Several financial institutions in Indonesia, for example, have shifted finance flows from fossil fuels to green investments by providing funding for low-carbon and climate-friendly development projects.
To promote greater transparency in sustainable economic activities and economic transition, the taxonomy compiled by DBS Bank outlines methods of managing transactions classified as “Green”, “Transition” and/or contributing to the United Nations Sustainable Development Goals (UN SDGs). It also summarizes a broad list of eligible economic activities – such as turning recycled plastic into clothes or upgrading the power grid to integrate fragmented renewable energy sources.
DBS Bank sees strong interests in sustainable financing in the countries and sectors where DBS Bank operates, including in Indonesia. The green loan market is dominated by real-estate borrowers, but DBS Bank is also involved in other sectors such as renewable energy equipment and electric vehicle battery manufacturing. DBS Bank offers transition finance for companies seeking to gradually reduce their carbon footprint. Furthermore, DBS Bank is the first commercial bank to issue the Sustainable Finance and Transitional Framework and Scheme (Taxonomy) as reference for customers in adapting and building resilience in the midst of climate change, resource scarcity, and in addressing important global issues such as income inequality.
Wimboh Santoso, Chairman of the Board of Commissioners of the Financial Services Authority, said at Sustainability Action for The Future Economy (SAFE) 2021: Financing Sustainability, "The transformation towards a sustainable green economy requires simultaneous support from economic and financial policies as well as ethical and governance policies. All stakeholders must work together to create a sustainable economy in Indonesia.”
Speaking at the same event, Kunardy Lie, Corporate Banking Director of Bank DBS Indonesia, explained, “It is undeniable that every institution today must contribute to the sustainability agenda, as in the case with DBS Bank. Sustainability Outcomes are one of our priorities in running the banking business. As a purpose-driven bank, we strive to help customers integrate sustainable business practices into their overall business strategies. Therefore, DBS seeks to accelerate our sustainability agenda in carrying out responsible business practices (responsible banking) by increasing the sustainable financing target to SGD50 billion by 2024.”
In addition to actively voicing various social and environmental issues, Bank DBS Indonesia also puts its words into action (walk the talk) by figuring out environmental and social aspects that can be generated from its business. This is accommodated in the responsible business practice pillar that focuses on sustainable implementation by Bank DBS Indonesia. One initiative is carried out in the office area of Bank DBS Indonesia at DBS Bank Tower and Capital Place through collaboration with Waste4Change, one of the social entrepreneur partners of Bank DBS Indonesia, to manage the waste and turn off the lights during lunch hours. Bank DBS Indonesia has also installed solar panels in several branches, including the DBS Pekanbaru and Bandung branches, as well as several other initiatives.
Bank DBS Indonesia also supports social entrepreneurs who tackle environmental and social issues such as Gandeng Tangan and MYCL, who were among the recipients of the DBS Foundation Social Enterprise (SE) Grant and who were among the speakers at Sustainability Action for The Future Economy (SAFE) 2021: Financing Sustainability (26/8) together with Sri Mulyani, Minister of Finance of Indonesia, who discussed sustainable finance with other economic experts.
DBS is a leading financial services group in Asia with a presence in 18 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 Euromoney, “Global Bank of the Year” by The Banker and “Best Bank in the World” by Global Finance. 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. In addition, DBS has been accorded the “Safest Bank in Asia” award by Global Finance for 12 consecutive years from 2009 to 2020.
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, and positively impacting communities through supporting social enterprises, as it banks the Asian way. It has also established a SG50 million foundation to strengthen its corporate social responsibility efforts in Singapore and across Asia.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. The bank acknowledges the passion, commitment and can-do spirit in all of our 29,000 staff, representing over 40 nationalities. For more information, please visit www.dbs.com.