Jakarta. Bank KB Bukopin announced it would issue green credits worth $20 million to Indika Energy’s subsidiary Energi Makmur Buana (INVI).

These green credits are expected to support the development of Indonesia’s electric vehicle (EV) ecosystem, among others, for the procurement of electric buses for the city-owned bus operator Trans Jakarta. The credits will also go into funding charging stations. 

KB Bukopin’s wholesale business head Feisel Martha and INVI president director Andreas Justiable signed the loan agreement at the bank’s head office in Jakarta on Monday. The loan agreement has a term of up to 12 months from the signing date.

According to KB Bukopin’s deputy president director Robby Mondong, green financing is expected to increase in size as the economy – as well as the green economy ecosystem – grows. The government is currently encouraging banks to disburse green financing. The recently agreed loans also reflect KB Bukopin's commitment to implementing environmental, social, and governance (ESG) principles.

"By actively taking part in ESG-based financing, we believe we can drive Indonesia's transition towards a sustainable economy, spur technology innovations, and create new jobs in this sector," Robby said in a statement.

"We believe green financing has a huge potential in Indonesia. Hopefully, our partnership with INVI can fast-track the development of Indonesia's EV ecosystem," Robby said.

Likewise, INVI's Andreas Justiabel said that this could help the government as Indonesia strives for a robust EV ecosystem.

"INVI reflects our enthusiasm to provide a local, commercial vehicle of the future that is more environmentally friendly. We vow to offer innovative solutions that meet the needs of Indonesian customers," Andreas said.