DISCLOSURE OF THE PROPORTION AND CLASSIFICATION OF GREEN CREDIT IN THE INDONESIAN BANKING SECTOR rudy hartanto (a*), irena paramita pramono (b), riyang mardini (b)
a) Accounting Department, Faculty Economics and Business, Universitas Islam Bandung
*rudyhartanto05[at]gmail.com
b) Accounting Department, Faculty Economics and Business, Universitas Islam Bandung
Abstract
This study aims to look at the portion and classification of green credit based on the provisions of the Indonesian financial services authority regulations. This research was conducted on banks that have provided green credit since 2018. The classification of green credit financing consists of 11 classifications. The results of the analysis of the green credit portion of total credit show that BRI bank has the largest portion, namely 57.34% (2019) and 63.88% (2020). The results of further analysis show that the largest portion of green credit is in the classification of MSME activities. Meanwhile, the least green credit financing is financing for climate change adaptation and Land and Water Biodiversity Conservation. The test results show that the low portion of green credit outside of MSME activities indicates a tendency for low environmental-friendly business activities or there is a possibility that the credit requirements proposed by environmentally sound companies to banks are still appropriate. Further research is expected to add to the identification of profiles of environmentally sound companies in Indonesia so that two points of view can be found between banking and environmentally sound companies.
Keywords: SDGs- banking- sustainability finance- green credit
