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State-owned banks draw flack for lack of clean energy loans
The AEER think tank says Indonesian SOE lenders are too slow in raising their financing of renewable energy projects, hampering the country's drive for renewable energy.
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With 100 kilowatt peak (kWp) in capacity, the Waduk Muara Nusa Dua floating solar power plant in Bali was built to supply electricity from renewable sources for the Group of 20 Summit held on the island last November.
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ndonesian state-owned banks have been too slow in providing financing for renewable energy projects, raising questions about whether the country is committed to the energy transition, according to Jakarta-based energy think tank Association of People’s Emancipation and Ecological Action (AEER).
The increases in renewable energy-related loans by state-owned lenders BRI and Mandiri were only Rp 1.6 trillion and Rp 1.4 trillion, respectively, in 2021, according to AEER data, though BNI did better with Rp 4.88 trillion.
In 2022, lending to renewable energy by BRI, Mandiri and BNI was only Rp 1.5 trillion, Rp 1.86 trillion and Rp 1.34 trillion, AEER data show.
“These increases are mostly still less than Rp 2 trillion every year,” AEER coordinator Pius Ginting said in a statement on Monday.
The think tank said Indonesian lenders lagged behind Malaysian banks like Maybank Malaysia and CIMB Malaysia, which extended an extra Rp 3.22 trillion and Rp 9.53 trillion, respectively, to renewable energy in 2021.
Read also: Explainer: Regulatory paradox hampers Indonesia's green energy bill
“SOE lenders have yet to make investment in renewable energy their main focus. Financing of the coal sector still accounts for the largest portion,” he added.
