sustainable finance in bank syariah mandiri -...

Sustainable Finance in Bank Syariah MandiriKuala Lumpur Islamic Finance Forum 2019Kuala Lumpur, 9-10 April 2019

Ir. Putu Rahwidhiyasa, MBA, CIPMRisk Management and Compliance DirectorPT Bank Syariah Mandiri

PUTU RAHWIDHIYASA

CURRENT POSITIONBank Syariah MandiriRisk Management & Compliance Director

PREVIOUS POSITIONBank Syariah MandiriVarious position: Risk Management & People Management; Pawning; Corporate Transformation; CultureBank MandiriVarious position: Retail & Consumer Risk; Portofolio & Operational Risk; Human Capital; Office of CommissionerBank Ekspor Impor IndonesiaVarious position: Corporate Restructuring Team; Initial Public Offering Team; International Banking; System and TechnologyMerincorp Securindo & Cinere HospitalCommissioner

EDUCATIONMBA from University of Illinois, USABSc Agricultural Science, Bogor IndonesiaAgricultural University, Indonesia

2

Agenda

Introduction Opportunities & Challenges

BSM Integrated Social Action in 2018

Framework & Roadmap

Triple Bottom Line (3P)

Maqashid Asy Syariah

Introduction

4

02Profit

Preservation the Property

03Planet

Preservation the Offspring

01People

Preservation the Religion

Preservation the Life

Preservation the Intellect

The implementation of POJK No.51/2017 on Sustainable Finance in 2019 is for banks with capital above Rp 5 trillion ($ 353 million)

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2014 2015 2016 2017 -

2018

2019 -

2024

1. Policy on SF Principles

2. Policy on Increase on SF Portfolio

3. Policy on SF Supervision

Activities 1. Prepare for SF policy

2. Information Hub3. SF Awards 4. Policy on SF

reporting

Activities

1. Improve SF competencies for financial sector

2. Measure the understanding of financial services sector in SF

3. Collaboration & coordination with the government &

stakeholders

Activities

Strengthening of risk management & corporate governance in environmental & social aspects

Activities

OJK Sustainable Finance Roadmap

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Governance Enhancement

Product & Service Capacity Building

• The Governance Policy has regulated the Sustainability of Sharia Banking Principle

• Establishment of a task force, sustainability work unit

Financing Sector Focus:• Education• Health• Infrastructure

• Establishment of thesustainability financedepartment

• Improving the qualityof understanding ofemployees related tosustainable financethrough:a. Trainingb. sharing session

Current condition in Mandiri Syariah

Agenda



Framework

Mandiri Syariah Sustainable Finance Framework

Financing Sector Focus:

Healtcare, Education, Infrastructure

Community Empowerment

Mosque Empowerment

Education, Health

Volunteering Disaster Recovery

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9

Impact of Business Sector on SDGs

Education

Health

Leading Financing Sector Sustainable Development Goal’s

Infrastructure

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Program BSM Integrated Social Action (BISA)

Go Green Campaign

Inovation

Sustainable Development GoalsFlagship program

Impact of Business Sector on SDGs

Agenda



Framework

Sustainable finance implementation has several opportunities related to funding,

financing and markets

The financing of environmentally friendly

renewable energy will increase such as

energy from sunlight, mini hydro, etc.

Renewable energy

Financing to investors who are

environmentally friendly

Green Bond

Compliance with international sustainable

financial standards can increase domestic

and global market confidence

Global Market

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Opportunities

Renewable Energy

Renewable Energy

The financing of environment friendly

renewable energy will increase such as

energy from sunlight, mini hydro, etc.

Green Bond

Green Bond

Financing by investors who are

concern with environment

Global Market

Global MarketComply with international

sustainable finance standards can

increase domestic and global market

confidence

Sustainable finance implementation

has more or less four challenges

faced by the financial services

industry, especially banking

Challenges

Potential Resistance from Customers

Unmeasured Impacts

Business Process Adjustment

1

2

3

Opportunities and Challenges

13

Agenda



Framework

Zakah and Social Fund in Sustainable Finance Implementation

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16


Rp1

5.7

02 M

Rp1

7.7

11 M

$1

.256 M

Rp1

0.5

83 M

$0

.750M

$1

.113 M

Rp4

.10

9 M

$0

.291 M

Rp1

9.6

40 M

$1

.392 M

Rp4

0.8

39 M

$2

.896 M

Total Rp 108.583 B ($ 7.700 M)

Local Economic Dev. EducationHealthcare,

Da’wah, Islamic Charity

Zakah & Infaq

Social Fund

Our Latest Contribution for Humanity in 2018

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Local Economic Dev

EducationOthers from Social

Funds

Beneficiaries12

806

241

10.120

890

60.080

1.413

138.609

2.556 209.614

= # of institution

= # of people 17

Health Care, Dakwah, Charities

BSM Integrated Social Action in 2018Our Latest Contribution for Humanity in 2018

GOAT CLUSTERPurbalingga50 men/200 benefit recipients-Goat brood- Goats to be fattened- Land for feed- Communal cage

PADI CLUSTERCentral Lampung 100 men/420 benefit recipients-Rice mill-Rice seedlings-Organic fertilizer-Organic pesticides-Accompaniment

COW CLUSTERTrenggalek50 men/200 benefit recipients-Cows- Cows to be fattened- Land for feed- Communal cage18


Desa Berdaya Sejahtera Mandiri (BSM)Padi Cluster Central Lampung

Objectives: Applying farming without chemical fertilizers and pesticides

Increasing farmers’ income

Implementing agricultural zakah (5% of rice yield)

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Number of Farmers 100 Men (420 recipients)

Area of land financed 25 Ha or 0,25 Ha / farmer

Total Harvest Period I – Dry Grain Harvest 131.290 kg / 131,3 ton

Average per hectare 5,3 ton/ha

Average harvest per farmer 1.313 kg/0,25 ha

Amount of Grain sold to group 101.442 kg/101,4 ton

Agricultural Zakat 6.123 kg/6,12 ton

Grain for farmers' consumption 23.725 kg/23,7 ton

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The Example of ImpactDesa Berdaya Sejahtera Mandiri (BSM)

Padi Cluster Central Lampung

DescriptionConventional

RiceEnvironmentally

Friendly RiceDifference

Harvest Dry Grain Prices Rp. 4.500 Rp. 5.000 Rp. 500

Farmer Revenue 1313 kg x 4.500 = Rp. 5.908.500

1313 kg x 5.000 = Rp. 6.565.000

Rp.1.096.500Farming costs per 0.25 ha Rp. 4.000.000 Rp. 3.560.000

Farmer Revenue 1 cultivation period (4 months)

Rp. 1.908.500 Rp. 3.005.000

Estimated Income from the sale of rice and other products by the Group)

- Rp. 1.024.000 Rp. 1.024.000

Comparison of Farmer Income per harvest period

Rp. 1.908.500 Rp. 4.029.000 Rp. 2,120,500

The Example of ImpactDesa Berdaya Sejahtera Mandiri (BSM)

Padi Cluster Central Lampung

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Desa Berdaya Sejahtera Mandiri (BSM)Purbalingga Goat Farm Cluster – Preparation for Launching

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Desa Berdaya Sejahtera Mandiri (BSM)Trenggalek Cow Farm Cluster – Preparation for Launching

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BSM Mengalirkan Berkah

Objectives: Mantaining mosques around Mandiri Syariah outlets

Exploring the possibility of a mosque-based community empowerment program

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Islamic Sociopreneur Development Program (ISDP)

Objectives:

Providing student scholarships program by total amounths to Rp 8.8 billion

($ 621,025.80)

Developing sociopreneur and spirituality

Establishing independent and entrepreneurial skills and social awareness

Campus Participants:

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Lombok and Palu Disaster Response

Objectives: Providing disaster emergency assistance

Providing post-disaster assistance in the fields of health, logistics, breast milk subtitutes

Total assistance provided amounts to Rp 1.808 million ($ 0.127 million) from zakah and Rp

685 million from social funds ($ 48,345.25) for 6.429 people

Thank You

“And Allah has sent down rain from the sky and given life thereby to the earth after its lifelessness. Indeed in that is a sign for a people who listen.” (Qur’an, 16:65)

http://quran.com/16/65

sustainable finance in bank syariah mandiri -...

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