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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