Best for ESG investing in Indonesia 2023
At last November’s Group of 20 summit in Bali, Indonesia’s government went to great lengths to showcase its commitment to sustainability. No other outfit in the country exemplifies that ESG emphasis better than Bank Danamon and its private banking division.
Danamon helped to pioneer the green ecosystem idea in Indonesia and paved the way for the electric vehicle industry to steadily gain traction locally. It was the first local bank to support the EV charging station infrastructure that Indonesia’s president, Joko Widodo, touted at the G20 to highlight the nation’s ESG credentials.
Danamon, which is part of Japan’s largest bank MUFG, even rolled out an incentive programme to encourage employees to buy an EV or install solar panels in their houses.
The firm’s leading role in sustainable finance is proving a powerful selling point for its private banking unit. Client interest in ESG investing is growing fast. The bank’s Go-Green push is luring net new money and helping to recruit promising young bankers and relationship managers.
In 2022, the team led by Ivan Jaya, consumer funding business head, added new options to its already wide range of ESG investment products. These include: two new ESG-focused index mutual fund products; an open-ended equity mutual fund product; the Ashmore Digital Equity Sustainable Fund; two green government bond funds; and two new Danamon funds.
The Danamon Wealth Series of events is adding numerous ESG-themed sessions to engage clients. The bank produces investment updates and education seminars on sustainability trends, regulation, good governance, market mechanics and opportunities and risks. One big event, held in person, was done with partners Eastspring Investments and Ashmore Group.
Danamon’s ESG investment transaction volume hit Rp1 trillion ($65.5 million) in 2022, a record.
The bank is reducing its own carbon footprint, one branch at a time, too.
At the end of 2022, Danamon had a network of 881 conventional branch offices, Shariah units, and subsidiary branch offices. Between its popular app and highly competitive web-based platforms, Danamon’s extensive system of ATMs and kiosks is reducing the need to expand the branch system – and keeping ESG considerations in check.