Sustainability in BCA Responsible Banking Sustainability Aspects Highlight
Infrastructure Financing (Rp billion) [FS6]
Description 2022 2021 2020
Toll roads 1,248 889 3,780
Electricity 2,019 1,945 1,690
Railroads 2,667 2,318 1,955
Executive Airports and Ports 2,759 2,760 2,855
Water and Sanitation 818 892 1,014
Total 9,510 8,804 11,295
Note:
Data as of December 31, 2020 and 2021 restated to conform with the results of portfolio identification as of December 31, 2022
Infrastructure Financing (including non-cash loans)
Sector 2022 2021 2020
Rp billion % Rp billion % Rp billion %
Toll roads 28,955 51.5 24,171 44.0 17,293 38.0
Electricity 10,510 18.7 10,170 18.5 14,498 31.9
Railroads 3,365 6.0 4,067 7.4 3,353 7.4
Telecommunications Tower 9,553 17.0 12,591 22.9 6,408 14.1
Airports and Ports 2,890 5.1 2,897 5.3 2,904 6.4
Drinking Water and Sanitation 906 1.6 986 1.8 1,014 2.2
Infrastructure Financing Portfolio (including non-cash loans)
56,179 100.0 54,882 100.0 45,470 100.0
ESG-Based Electricity Sector Financing Portfolio by Region (Rp billion) [FS6]
Description 2022 2021 2020
Sumatera 1,085 1,141 1,103
Java 494 546 353
Nusa Tenggara 45 73 49
Sulawesi 53 81 54
Kalimantan 92 104 131
Total 1,769 1,945 1,690
Note:
total financing for 2022 excluding bonds of Rp250 billion
Social Value Creation Sustainability Report in Brief Sustainability Culture Impact
ESG-Based MSME Loan Portfolio [FS8]
[FN-CB-240a.1]
MSMEs have a crucial position in the Indonesian economy as it to absorb the workforce and drive the local economy. BCA adopted the Macroprudential Inclusive Financing Ratio (RPIM) issued by Bank Indonesia in 2021 to support Indonesian economic revival. The policy aims to afford the banking industry to participate in economic inclusion and strengthen MSMEs for economic recovery. The RPIM fulfillment policy has been set in stages, starting with a minimum ratio of 20% in 2022, 25% in 2023, and 30% in 2024. BCA's RPIM target growth in 2022 is 20.4%. BCA continues to evaluate the RPIM ratio in its development under the supervision of management.
BCA supports the MSME sector through lending, which reached Rp102.3 trillion in 2022, or approximately 14.7% of total loans. BCA has also developed a special ESG-based MSME loan program with lower interest rates. Until the end of 2022, the ESG-based MSME Loan portfolio has channeled Rp17.5 billion to debtors related to waste management sectors.
People's Business Credit (KUR)
In 2022, BCA disbursed Rp478 billion in KUR, an increase of 131.6% from Rp206.4 billion in 2021.
BCA has been financing KUR programs that have a direct economic impact on the community, such as increasing the activity and creativity of unbankable communities living in underdeveloped areas. Types of people's businesses that receive KUR include handicrafts, processed agricultural products, animal husbandry, and nurseries. [FS7][FN-CB-240a.1]
BCA’s prospective KUR debtors must go through a set of procedures. They must meet the loan requirements, including in the screening for social and environmental management. BCA applies the principle of equality in screening prospective debtors, regardless of their background. Several KUR debtors are BCA's assisted partners who have previously received ESG mentoring and training to help smooth their business transactions.
In addition, BCA is committed to disbursing KUR in the production sector, including one in collaboration with 200 cattle breeders in the East Lombok Regency Government, to support them in purchasing Indonesian cattle for a period of 12 months. [FS5]
To make it easier to apply for KUR, BCA has been digitalizing the process through the e-form, which was released in February 2022. The realization of applications via e-form as of November 2022 amounted to Rp15.2 billion (67 applications). In addition, BCA has been developing an end-to-end KUR application through the LOUISE application, where the process from the KUR application, loan agreement signing, to loan realization are done digitally.
BCA carries out a cooperative strategy with off- taker and channeling schemes to reach small- scale productive businesses and increase the KUR portfolio. In 2022, KUR BCA was Rp2.9 billion, or 0.6%, which was below the maximum limit of 5% per year. [FN-CB-240a.2]
Efforts to Support MSME Entrepreneurs
BCA’s efforts in raising MSME awareness in 2022 were through collaboration with government and private sectors to hold offline events in several places, including:
KUR Disbursements [FS8][FN-CB-240a.1]
Type of KUR Number of Debtors Disbursed Loans (Rp billion) Composition (%)
Micro 430 29.6 6.2
Retail 1,581 448.6 93.8
Total 2,011 478.1 100.0
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Sustainability Report 2022
Sustainability in BCA Responsible Banking Sustainability Aspects Highlight
Indonesia Maju Expo and Forum 2022 (Ministry of Internal Affairs) on May 26-29, 2022, located in Jakarta Convention Center. BCA provides sponsorship worth Rp100 million, with 135 SMEs tenant and 5,185 visitors.
Karya Kreatif Banten 2022 (Bank Indonesia) on May 20-22, 2022, located in Summarecon Mall Serpong, involving 100 SME tenants with 40,000 visitors.
Jakarta Fair 2022 on June 9 -17, 2022, located in Jakarta Convention Center. Involving 1,500 tenants where 35% of the tenants are SMEs. The number of BCA booth visitors reaching 500 people.
Likupang Tourism Festival 2022 (Ministry of Tourism and Creative Economy) on July 30, 2022 located in Marinsow Tourism Village, East Likupang, North Minahasa, North Sulawesi involving 38 tenants with a total of 500 visitors.
Business Matching (Ministry of Cooperatives and SMEs) on March 21-24, 2022, located at the Grand Hyatt Bali.
BCA provides sponsorship worth Rp50 million. This event assisted 24 SMEs and received 1,482 visitors.
KUR Fintech (Coordinating Ministry for the Economy) on May 18-19, 2022, located in Solo Technopark, Surakarta.
BCA provides sponsorship worth Rp30 million. This event consisted of 38 booths, with total of visitors reaching 1,000 people.
PT Bank Central Asia Tbk
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Social Value Creation Sustainability Report in Brief Sustainability Culture Impact
The KUR Festival and UMKM Goes to Capital Market (Coordinating Ministry for the Economy) on September 28- 29, 2022, located in Manado Town Square, North Sulawesi Involving 15 tenants with 41 people visiting BCA booth.
Inclusive Partnership Movement for MSMEs to Upgrade Class (Indonesian Chamber of Commerce and Industry/
Kadin) on October 3, 2022 located in Smesco Building, Jakarta. This event involved 15 SMEs with 300 visitors.
Exploring Indonesian Coffee (Otten Coffee Indonesia) on October 7, 2022 located in Otten Coffee, Bandung, involving 7 MSMEs assisted by Otten with a total of 60 visitors.
Financial Expo/FinEXPO 2022 (Financial Services Institution) on October26-30, 2022,located in Central Park Mall, Jakarta, involving 78 tenants (banking, insurance, financing, and capital markets).
BCA 2022 UMKM Fest was held on August 10-14, 2022 in Gandaria City. This event consisted of 52 tenants with the number of BCA booth visitors reaching 100 people.
The KUR 2022 Coaching Clinic (Ministry of Tourism and Creative Economy) on September 9, 2022, located in Labuan Bajo, East Nusa Tenggara, involving 20 tenants with 15 people visiting BCA booth.
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Sustainability Report 2022
Sustainability in BCA Responsible Banking Sustainability Aspects Highlight
BCA developed the Bangga Lokal (Local Pride) program to support MSMEs in developing their business.
This program is an initiative of the Transaction Banking Business Development and Marketing Division.
BCA supports selected MSMEs in promoting and marketing their business, and marketing, as well as providing education and working capital financing opportunities. BCA also has development programs through webinars on relevant business topics, collaborations between MSMEs and creators for new product development, and coaching clinics. As of December 2022, 1,477 MSMEs have become new members of the Bangga Lokal program, which has increased compared to 2021 of 745 MSMEs.