BUSINESS SOLUTIONS TO ACCELERATE RENEWABLE ENERGY (SOLAR PV) LOAN PORTFOLIO’S GROWTH IN PT BANK MANDIRI (PERSERO), TBK

• Main Author: Octorino, Hendy
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/75917
• Institution: Institut Teknologi Bandung

The Government of Indonesia has an important mission to reach the installed capacity of new and renewable energy by 23% from the total energy mix in 2025 and net zero emissions in 2060. As a guideline to achieve the mission, The Electricity Supply Business Plan (“RUPTL”) 2021 – 2030 of PT PLN (Persero) has been issued by the GOI in 2021 and it is claimed as the greenest RUPTL to date and marks a turning point for Indonesia’s energy transition plan where it contains a larger portion of capacity expansion plan for renewable energy generation of 51.6% or 20,923 MegaWatt (“MW”) in 2030. Banking sector plays important role to support the GOI mission considering the investments needed amounting USD 6.3 Billion and both the government and private sectors have limitation on budget. Sustainable finance’s execution is quite challenging considering its essentially a new practice for parties involved in the ecosystem. An inadequacy of experts and few number of sustainability-determined projects in new and renewable energy projects are several of the challenges that may severely restricted Bank Mandiri’s desire to provide financing in sustainable projects. This research is conducted to review and analyze Bank Mandiri’s business issue in renewable energy (Solar PV) project’s loan portfolio and to propose business solutions to accelerate and increase the bank’s loan portfolio growth based on the conceptual framework