The Role of Sustainable Finance and Technology at Bank BJB in Supporting the "Sustainable Development Goals"

On September 25, 2015, UN member states raised a series of the 2030 Sustainable Development agenda which includes 17 Sustainable Development Goals (SDGs). The SDGs consist of: No poverty, No hunger, Healthy and prosperous life, Quality education, Gender equality, Clean water and proper sanitation, Clean and affordable energy, Decent work and economic growth, Industry-innovation and infrastructure, Less gap, Sustainable cities and settlements, Responsible consumption and production, Handling climate change, Marine Ecosystem, Land ecosystem, Peace-justice and strong institutions, Partnership to achieve goals. Fintech activities in small and medium enterprises in the community have been proven to be accelerated quickly with the digitization of MSMEs. This is supported by the availability of quality and sustainable infrastructure, as well as access to Information and Communication Technology (ICT). The Government's commitment to implementing sustainable development is specifically regulated in the National Medium-Term Development Plan (RPJMN) for 2020-2024. Sustainable development has been defined as one of the important aspects that aim to provide access to equitable and inclusive development, as well as protect the environment. The role of sustainable finance in World Wildlife Funding ( WWF) and the Financial Services Authority (OJK) jointly encourage the Banking Industry to play a role in Sustainable Finance Development while supporting the process of community economic development. The activities above also make environmentalists, companies and the government mutually encourage all these positive activities to be carried out nationally and globally so as to contribute to sustainable economic development and support equality in the economic, social and cultural sectors.


Research Method
Qualitative descriptive analysis method is a research method that is carried out to describe the current process or event that is used as the object of research, then the data or information is analyzed so that a problem solving is obtained.
The selection of the use of qualitative methods in terms of the research objective is to understand how a community or individuals accept certain issues.
For data tracking, online data collection techniques are used. The online data search method is the procedure for searching data through online media such as the internet or other network media that provides online facilities, thus enabling researchers to utilize online data in the form of accurate and academically accountable information. In the discussion later the author will focus on writing related to Bank BjB Based on the above background, this research formulates the problems to be studied and analyzed as follows: 1. How are global environmental problems related to economic growth and development ? 2. How can sustainable development become a new paradigm in pursuing economic growth? 3. How does OJK as the pioneer of Sustainable Finance implement the Sustainable Finance Action Plan (RAKB) ? 4. What are the steps in the road map that has been carried out by OJK? 5. How does Bank BJB implement environmental risk management and governance?

Findings 3.1 Relationship of Global Environmental Issues & Economic Growth and Development.
As we all know, the ozone layer is getting thinner. Without the ozone layer, the earth we live in will experience various negative impacts that will affect living things, including the spread of disease, unpredictable weather, global warming, and even the loss of an area due to melting of the ice in the North Pole and South Pole. Previously, most people thought that global environmental problems were more influenced by natural factors, such as climate, which includes temperature, rainfall, humidity, air pressure and others. Nowadays people are starting to realize that human activities also affect the climate and the environment significantly [6]. Factors causing environmental problems are technology, population growth, economic motives and prevailing values. The results of the technology are applied in the industrial, agricultural, transportation and communication sectors.
Population growth and an increase in wealth are the causes of a decrease in the quality of the environment. In its activities, economic progress turns out to be expensive with environmental destruction whose impacts are already being felt today, including water, air and soil pollution, floods and droughts due to forest exploitation, as well as increasing Earth's temperature due to greenhouse gasses [7] . If this condition is not taken, the impact will be felt by future generations. Economic development is also considered to have not succeeded in improving the welfare of the lower class.

Sustainable Development As A New Paradigm In Pursuing Economic Growth.
In the World Economic Forum stated in the 2013 report, it explains that economic growth and environmental issues are part of the risks that must be considered together, both of which are related and it is mutually agreed that the impact of industrial growth has caused environmental damage which in turn increases other impacts on the environment. global economy.

The GINI Index (World Bank Estimate)
Which is generally used as a reference to see the inequality of income distribution in the last 50 years, shows that there has been no significant effect on economic improvement in both developed and developing countries; climate change and poverty alleviation have become global issues and require the participation of all economic actors, both individuals and corporations as well as the government. Both have become international agendas that are included in the Sustainable Development Goals (SDGs) set by the United Nations [8] The  [9]. The Sustainable Development Goals (SDGs) are an international agenda that is a continuation of the Millennium Development Goals (MDGs). The United Nations (UN) together with 194 other countries have jointly prepared SDGs to help answer various world problems related to handling climate change, poverty and other social problems related to humanity and all of them are structured to be realized as real actions.
The Role of OJK as a Pioneer of Sustainable Finance in Implementing the Action Plan and currently financial service institutions have an important role in spurring economic growth as well as directing and coloring economic activity [10]. If in the past the parameters of success of financial service institutions were only on financial profits, then for now and in the future it is considered inadequate.
The Global Financial Crisis that occurred in 2008 was an important lesson on how the financial sector is very influential so that currently reforms and improvements in this sector are needed to strengthen capital so that further stability in the financial system can be created. This is also in line with the implementation of Good Corporate Governance. from Bank Indonesia, which also has a view to developing environmentally friendly banking programs Two main reasons according to Bl who considered that it was important: 1. Responding to Law No. 32 of 2009, concerning the Protection and Management of the Environment which requires all economic activities to comply with encouraging environmental sustainability by imposing criminal sanctions for the perpetrators up to the revocation of environmental permits. legal risk and reputation risk. 2. The national problem which is currently still a homework is food and energy security.
The national problem which is currently still a homework is food and energy security. These two sectors have a significant impact on the economy. This can be seen from the relatively large imports, fluctuations in commodity prices that affect inflation and exchange rate pressures, as well as the APBN deficit.
For this reason, banking support to finance these two sectors is very important. If banks support financing to the energy and food security sectors, the result will be energy and food self-sufficiency, as well as helping reduce greenhouse gasses. In addition, the scope of green finance can be expanded to other strategic sectors, such as services or transportation, industry, housing, and creative economy products that put forward the principles of Green Economy, social and environment, which are actually three (3) different fields because they have their own characteristics. -each, but not impossible to put together.
OJK, which is the supervisory body for financial services institutions, has proven that these three fields can be combined into one concept, which is called " Sustainable Finance". Sustainable Finance is the overall support of the financial services industry for growth resulting from the alignment of economic, social and environmental interests.

The launch of this Roadmap is a continuation of the collaborative program entitled "Green Banking"
Once established between the Ministry of Environment and Bank Indonesia in 2010. Along with the birth of OJK, the Green Banking program was delegated by BI, and the concept was expanded not only to banking, but also to financial service institutions. The main mission of Sustainable Finance like Green Banking when it was first introduced is to change the paradigm in national development from a Greedy Economy to a Green Economy. Green Economy is a term where the focus of the economy is limited to economic growth which is assessed through the growth of Gross Domestic Product (GDP), exploitation of

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■ 100 natural resources, and economic activities that rely on debt. Meanwhile, Green Economy is a change in perspective on economic development by taking into account the balance of the 3Ps, namely people (social), profit (economics) and planet (environment).
The Sustainable Finance Roadmap outlines three strategic work plans, namely: 1. Increasing the supply of environmentally friendly funding; 2. Increased demand for environmentally friendly financial products and 3. Improved supervision and coordination of sustainable finance implementation.
In the Medium-Term period (2015-2019), namely strengthening sustainable finance focused on the basic framework of regulation and reporting systems, increasing understanding, knowledge and competence of human resources in the financial services industry, providing incentives and coordinating with related agencies & Long Term (2020-2024) namely activities focused on the integration of risk management, corporate governance, assessment of the soundness of banks and the development of an integrated sustainable financial information system.
In the long term, distribution to strategic sector industries with the concept of sustainable financing is expected to encourage sustainable economic growth which in turn will provide a larger market for financial services institutions. A larger market will be created along with the resulting economic growth which will then have a positive impact on the sustainability of Financial Services Institutions in particular and is also expected to reduce Indonesia's balance of payments deficit.
Related to HR As an effort to encourage sustainable financing due to constraints on the ability of Indonesian human resources not to be competent enough to assess strategic economic sectors, there are several initiatives carried out by OJK in collaboration with relevant parties, both nationally and internationally, including to: Improving the human resources capacity of Financial Services Institutions (LJK) to manage risks related to the environment; 1. Improving the competitiveness of FSIs regarding the ability to finance businesses related to environmental protection; 2. Provide competition space to increase credit/financing portfolio in priority economic sectors that support environmental protection activities; and 3. Increasing awareness and changing paradigms (mindset) in national development from a greedy economy to a green economy. The Eight Banks with the Largest Assets are committed to being pioneers for sustainable banking. This commitment is stated through a Pilot Project in collaboration with OJK and WWF -Indonesia, entitled "The First Step To Become a Sustainable Bank". The eight banks are Bank Mandiri, BRI, BCA, BNI, Bank Muamalat, BRI Syariah, Bank Bjb and Bank Artha Graha Internasional . This commitment is a major step taken by banks after less than a year the OJK's Sustainable Finance Roadmap was launched on 5 December 2014. This pilot project aims to support the preparation of bank competencies regarding the targets in the Roadmap for Sustainable Finance in Indonesia for the period 2014-2019. Competencies that are specifically targeted are the organization's ability to manage Environmental, Social and Governance (ESG) aspects in its business decisions. Also to increase the portion of financing to business activities that are carried out in a sustainable manner. This big step taken by eight banks that represent 46% of national banking assets is expected to encourage banks and other financial service institutions to follow their footsteps to start implementing sustainable finance in Indonesia. Furthermore, as a follow-up to the commitment in managing and implementing environmental, social and governance aspects, the bank also takes a role in improving the performance profile of companies in Indonesia. OJK together with WWF will continue to assist these eight banks to start implementing sustainable finance systematically. As part of the pilot project, participating banks will receive a series of technical assistance including identification of bank ESG risk profiles This process also takes advantage of opportunities identified through limited discussions with banking experts, as well as industry players. The active role of banks, OJK and WWF Indonesia is carried out in order to encourage gradual integration of ESG until finally the practice of banks and other financial service institutions in Indonesia can achieve the best performance standards for ESG aspects

Bank Bjb in activities to become a pioneer of Sustainable Finance
Bank Bjb which is included in 8 (eight) banks that play a role in the development and implementation of sustainable financial activities has received an award from the OJK related to "Indonesia First Movers On Sustainable Banking", Bank Bjb received an award from OJK, namely "Sustainable Finance Award 2016" for the BUKU III category. This award was given to bank bjb for paying attention to social and environmental aspects. Bank bjb is the first regional development bank to list its initial shares (IPO) on the Indonesia Stock Exchange (IDX) on July 8, 2010. The funds obtained from this Public Offering are used by bank Bjb to strengthen the company's capital in order to support credit expansion, especially MSME sector, network expansion, and information technology development.
In 2016 bank bjb had a strategic policy of increasing the growth of quality lending through diversification of the financing portfolio in addition to captive market financing of government projects and financing for the consumer sector. The policy will be realized with a credit expansion plan in the oil palm plantation, electricity, shipping and oil and gas industrial sectors.
The sustainability of a bank's business is not only measured by the growth of financial performance , but also the ability to understand social and environmental problems in the community around the bank's operational area and the extent to which the bank's care and involvement in community development as a whole is carried out including through: 1. Determination of policy on AMDAL requirements for credit analysis. 2. Efficient use of materials and energy consumption. 3. Implement CSR programs aimed at increasing community independence and preserving the environment. 4. Innovation of banking products and services aimed at the children segment as a form of education on how children have a savings account and manage it themselves. Namely by launching a new savings product, namely "Tandamata My First" 5. Providing easy access to credit for low-income people and Micro, Small and Medium Enterprises (MSMEs) through micro credit and People's Love Credit (KCR). 6. Conduct socialization and education activities through the use of financial literacy education cars (SiMoIek). 7. Launched the Mini Banking program aimed at elementary and junior high school students. 8. CSR programs in the education sector are aimed at early childhood education to tertiary institutions, vocational schools and special children's education. 9. CSR activities in the health sector.
Through these programs, the bank bjb demonstrate a commitment to continue to synergize and improve its performance through product innovation and environmentally friendly services to improve competitiveness and the economy of the community without reducing concern and attention to social and environmental aspects.

Result & Discussion 2019 Annual Report 4.1 Building Local Wisdom Through Business Repositioning and Reorganization
Bank Bjb is one of the regional banks that has very good performance where it participates as a very important partner of the government, especially in carrying out the mission to build the welfare of the local community. from MSMEs to large-scale businesses. The Corporate roadmap that has been made in 2017 -2022, where 2019 is stage 2 (two) to carry out business growth while still paying attention to business quality and being able to develop existing business infrastructure that is digitally based.
In 2019, additional capital was carried out in order to support digital-based IT infrastructure development activities which can further support business growth, increase third party funds through the development of E-Chanell which can maintain banking liquidity, increase credit growth with better quality, digital development banking to increase digital transactions, joint collaboration in the supporting field in order to achieve the company's business targets.

System Optimization
From this digital-based banking service activity, it changes how services are delivered to customers which brings a positive side and is the focus of bank bjb going forward, namely: 1. Assist customers in getting faster and more efficient service through the applications they usually use on the gadgets they use in real time and they can control their business activities in an integrated manner, especially all things related to transactional banking, or the integration of other banking services that can developed in collaboration with other fintech startups. 2. Increasing the speed of service and convenience is the spearhead of digitization because customers want to get service quickly without having to queue at the bjb branch office or even at the ATM machine. Therefore, the bank bjb IT team must continue to innovate in developing application program interfaces, e-channel features and artificial intelligence (AI) that are able to meet customer desires. 3. Enhancement of security features and development of IT infrastructure to support customer convenience and security in conducting digital banking transactions 4. Encouraging customers to be more efficient and environmentally friendly through digitalization activities, because customers can still transact without having to go to an atm or branch office, it will reduce a lot of emission footprints, which in the past, with every transaction, customers would not want or not. must go to the banking service office or ATM. This activity is in line with OJK's expectations in Sustainability Finance, namely developing environmentally friendly banking products.

Information Technology Master Plan
The information technology division blueprint is a detailed, comprehensive and long-term oriented work breakdown as a part of decision making which includes goals, work objectives, strategies, implementation carried out in all related work units. The BluePrint of the Information Technology Division has been adjusted to the Bank's Business Plan (RBB) bjb and meets the elements of the framework in the preparation of the IT division roadmap until 2022.

Annual Report 4.4 Consistent in Development of Strategic Initiatives to Maintain Growth
The year 2020 is the second year of PT Bank Pembangunan Daerah Jawa Barat and Banten Tbk. implementing the strategy of "Accelerating Growth Through Organic and Inorganic Strategies and Strengthening Reliable Infrastructure to Support Operations and Digital-Based Products". This strategy is realized, among others, by strengthening capital, increasing the transactional banking business, implementing automation processes and comprehensive integration of Information Technology (IT)-based transactions as well as developing digital products and channels. These various strategic initiatives have succeeded in maintaining the performance of PT Bank Pembangunan Daerah Jawa Barat and Banten Tbk. to continue to grow in the challenging conditions in 2020, especially the challenges caused by the COVID-19 pandemic. In 2020 PT Bank Pembangunan Daerah Jawa Barat and Banten Tbk. has been able to increase Interest and Sharia Income by 4.38% which drives an increase in Profit for the Year by 8.02%. Loans Disbursed increased by 9.24 % and Third Party Funds increased by 19.39%

Digitization for the New Normal
During this pandemic, bank bjb continues to support the government's program to fight against Covid-19 by implementing all the recommended health protocols in every bank bjb operation. With this digital service, we can help improve social distancing to reduce the spread of the Covid-19 virus. In 2020, there was an increase in transactions using bank bjb digital products and services.

Confidentiality and Safety of Customer Data
Confidentiality of customer data and security in transactions will make customers feel calm and safe in carrying out transactions, this is also one of the company's focuses where during 2020 the Information Technology Division will continue to develop IT systems and infrastructure to make it easier while maintaining security in every transaction. done by customer Some of the applications developed are as follows; Aperd Management, KPR FLPP, Electronic Customer Relations Management, Liquidity Coverage ratio, Financial Information Service System, BPD One switching information system, Online Samsat motor vehicle tax payment services In bank bjb's efforts to improve data security and customer privacy, bank bjb also refers to the ISO27001 International Standard. This effort is becoming more evident with the company 's plan to conduct an ISO27001 assessment and certification in March 2021 2021 Annual Report 4.6 Growth Through Digital Acceleration.
In accordance with the vision of PT Bank Pembangunan Daerah Jawa Barat and Banten Tbk. (bank bjb) namely "Being Your Main Bank of Choice," the Company has transformed digital services, especially in 2021. The implementation initiatives and roadmap are designed around several key drivers to ensure alignment with business objectives. During 2021, the Company has carried out several developments in terms of core banking, switching and networking.
The strategic steps taken are the development of an integrated digital system where existing applications are refined and improved to be more advanced and more accelerated, the development of e Chanel features, system improvements to adapt to changes in the new business model so that everything can be integrated and at the same time can provide perfect business solution for customers Digital transformation that focuses on accelerating application development and improving e-channel features has driven business growth. In 2021, the Company has succeeded in increasing net interest and sharia income in the midst of the COVID-19 pandemic which has had a significant impact on the business environment, especially banking. The increase in net interest and sharia income was supported by growth in almost all of the Company's operating segments in 2021.

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Digital Banking
In the second year of the COVID-19 pandemic, many changes have occurred in life in the world. These changes occur in various aspects of life, one of the most visible impacts is from the economic side of starting a business, how to transact and changes in people's behavior in transportation.
The use of electronic and contactless money as a tool to meet the needs of the right transaction in the current era, this payment method is considered more appropriate during the pandemic which requires us to keep our distance and reduce direct contact. Users can make transactions without meeting face-to-face or waiting for time to collect the remaining change which can be accommodated through an automated system.
In meeting customer needs for the convenience of banking transactions during the pandemic, bank bjb is here by providing a cardless cash withdrawal or deposit transaction feature or better known as cardless.
In 2021, bank bjb recorded fee-based income from e-channel services of Rp.431.74 billion , an increase of 41.56% year on year. This increase in revenue was dominated by an increase in the number of bank bjb ATM/debit card users, as well as an increase in the number of bank bjb e-channel transaction users. In addition, bank bjb made a number of achievements Fee-based achievements as of December 2021 amounted to Rp431.73 billion. Overall, the achievement of fee-based income in terms of digital banking has reached 41.56 % ( YoY).
UEB's fee-based e-channel growth in the last 4 (four) years has always experienced a positive trend with fee growth of 20%-40% annually. Fee-based e-channels come from fee-based ATMs, internet banking, bjb SMS, bjb NET (bjb Digi), EDC, and other e-channel transactions.

Sustainability Report 2021 Theme : Supporting Sustainable Economic Growth Through Business Optimization And Digitalization
Customer Engagement Channels One of bank bjb's main priorities is to provide maximum service to all customers. This maximum service is provided through various types of channels to make it easier for customers to access bank bjb products and services which are summarized in the image below.

Digitization for the New Normal
In 2021, the value of transactions using bank bjb digital products and services will continue to increase, this figure shows the concern and awareness of bank bjb customers to reduce the spread of the Covid-19 virus. Although the number of transactions in the e-payment system decreased, there was an increase in the transaction value of 2 main types of items, namely related to the e-payment system, which consisted of bjb SMS, bjb NET, bjb EDC, and bjb ATM activities and e-wallet refills.

Figure 2. New Normal Digitalization
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Information Technology System Certification
a. The National Standard Indonesia Chip Card Specification is a standard for adjusting magnetic-based card technology into cards with chip-based technology. b. National Payment Gateway is an adjustment of the interbank transaction system where all transactions are carried out through delivery channels such as mobile banking, telephone, ATM, EDC. The payment system can be run non-cash and can be processed overseas. This is also encouraged by Bank Indonesia and OJK so that a payment system like this can be developed continuously to reach the MSME and Micro business segments

Future Information Technology Development Plan
Future technology is growing very rapidly, such as changes in business models that reach platforms such as market places, changes in consumer tastes, changes in economic globalization, all of which encourage banks to continue to innovate in regulation and technology development.

The Digital
Banking Strategy for 2022 is as follows: a. Improvement of infrastructure, system capability, features and applications (super apps) b. Implementation of Big Data and CRM in all business business segments c. Increasing Financial Inclusion and Digital MSMEs (smart behavior, QRIS, digital village and smart city) d. Electronic optimization of local government transactions (ETPD) e. Expanding collaboration with third parties (fintech collaboration) to build and build and expand the digital ecosystem Build comprehensive and targeted digital marketing

Conclusion
Sustainable development has been determined as one of the important aspects that aims to provide access to equitable and inclusive development, as well as protect the environment and from the banking sector, the Government through the Financial Services Authority (OJK) has issued a Roadmap for Sustainable Finance in 2014.