PT Bank Mandiri (PERSERO) Tbk.

Sustainable Finance
Framework
April 2024
Version 1.0
Table of Contents

1 Introduction 3

2 Sustainable Finance Framework Overview 4

2.1 Use of Proceeds Financing 6
2.2 Sustainability Linked Financing 6
2.3 Sustainable Client Financing 8
2.4 Corporate-in-Transition Financing 8

3 Eligible Activities 8
3.1 Eligible Green and Transition Activities 8
3.2 Eligible Social Activities 9
3.3 Exclusions 9

4 Process for Proposal Evaluation and Selection 10

5 Monitoring & Management of Transactions 10

6 Reporting 11

7 External Review 11

8 Appendix 12
8.1 Eligible Green and Transition Activities 12
8.2 Eligible Social Activities 24

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1. Introduction
1.1 About Bank Mandiri
Established in 1998, state-owned enterprise PT Bank Mandiri (Persero) Tbk (“Bank Mandiri”) is the
largest financial group in Indonesia with an overseas presence in 7 countries. Bank Mandiri provides a
full suite range of services in Corporate Banking, Commercial & Business Banking, Micro & Retail
Banking, Treasury & International Banking and Consumer Finance supported by various subsidiaries
to further strengthen the bank's position as a prominent financial holding’s institution in Indonesia.

Guided by the bank's vision to care for the interests of society and the environment, Bank Mandiri
prioritizes the interests of society by implementing effective sustainability programs, namely:
Sustainable Banking, Sustainable Operation, and Sustainable Beyond Banking (i.e., CSR and Financial
Inclusion) that are detailed in Bank Mandiri Sustainability Report. Through these strategic priorities,
Bank Mandiri will ultimately realize its aspirations as the customers' preferred partner by committing
to ethical and sustainable practices, good corporate governance, quality human resources, and high
shareholder returns.

1.2 Background
As a leading financial institution in Indonesia, Bank Mandiri recognizes the critical importance of
sustainable finance and its role in contributing to Indonesia's national sustainability targets. Bank
Mandiri has demonstrated its commitment to implementing sustainability initiatives through the
development of a Sustainable Finance Action Plan (SFAP) according to OJK Regulation No.
51/POJK.03/2017.

As the bank has a substantial presence in various sectors of the economy, it is imperative for Bank
Mandiri to develop a Sustainable Finance Framework that aligns with Indonesia's sustainability goals
while addressing its own sectoral exposure and ESG (Environmental, Social, and Governance)
commitments.

Bank Mandiri is embarking on the crucial endeavor of crafting a Sustainable Finance Framework to
align with Indonesia's sustainability goals while addressing its substantial sectoral exposure and pre-
established ESG commitments. With Indonesia's ambitious sustainability targets in mind, the bank
seeks to systematically evaluate and manage sustainability risks and opportunities within its high-
exposure sectors. This framework not only emphasize the bank's ESG pledges but also enhances
transparency, guiding both internal and external stakeholders on the bank's sustainable financing
approach. By establishing clear eligibility criteria for sustainable financing, Bank Mandiri aims to steer
its resources towards projects and activities that contribute positively to environmental and social
outcomes, furthering its role in responsible banking and supporting Indonesia's overarching
sustainability objectives.

In summary, the development of a Sustainable Finance Framework for Bank Mandiri is vital because
it provides a structured approach to implement sustainable finance, aligns the bank with national
sustainability targets, addresses sectoral exposure and ESG commitments, and guides both internal
and external stakeholders on the bank's stance and actions in sustainable financing. It is a strategic
step towards responsible banking and supporting Indonesia's sustainability objectives.

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1.3 Objectives
The Sustainable Finance Framework (“SFF” or “the Framework”) has been developed to align the
bank's business strategies with sustainable development goals, ensuring that its financial offerings,
services, and operations contribute positively to the environment, societal advancement, and
economic prosperity.

Particularly, the Framework serves to:

• Set out Bank Mandiri's methodology to classify eligible sustainable financing activities, and set
forth the criteria for the exclusion of activity to be identified as sustainable finance
• Provide a science-based approach criteria and processes for selecting, verifying, and reporting
on sustainable projects to ensure transparency and accountability on Bank Mandiri’s
sustainable financing initiatives
• Defining accountability mechanisms to ensure adherence to sustainability principles and in
line with global regional and industry practices to mitigate potential greenwashing risks
• Engage with customers to adopt sustainable finance practices in their projects in the face of
climate change, resource scarcity, and income inequality

The Framework is dynamic in nature and will be periodically reviewed and expanded as necessary to
amend and/or add additional qualifying activities and/or criteria to meet any applicable regulatory
requirements.

2. Sustainable Finance Framework Overview

Bank Mandiri has established the following Framework as part of our sustainability strategy. It
demonstrates guidance for stakeholders including regulators, clients, investors, and internal Bank
Mandiri on facilitating the classification, monitoring, and reporting of sustainable finance.
Driven by its commitment to sustainable progress, Bank Mandiri has committed to mobilizing capital
for environmentally conscious and socially responsible projects. This Framework was developed to
issue Green, Social, Sustainable loans or bonds, Sustainability Linked-loans or bonds, and other
sustainable finance instruments in Bank Mandiri. For the issuance of Bonds, a separate, more specific
framework aligned with the Green Bond Principles (GBP) will be established. This framework will be
tailored to the specific purpose of the instrument's issuance and developed in accordance with this
Sustainable Finance Framework.
In developing this Framework, it reflects Bank Mandiri’s goal of contributing to the achievement of
the United Nations' Sustainable Development Goals (SDGs)1 and align with the following standards
and principles, but not limited to:
• Green (2021), Social (2023), Sustainability (2021), and Sustainability-linked (2023) Bond
Principles, administered by the International Capital Markets Association (ICMA);
• Green (2023), Social (2023), and Sustainability-linked Loan Principles (2023) administered by
the Loan Market Association (LMA);
• Climate Bonds Taxonomy (2021) administered by the Climate Bonds Initiative (CBI);
• EU Taxonomy (2021 & 2022) administered by the European Commission;
• ASEAN Green (2018), Social (2018), Sustainability (2018) Bonds, Sustainability-linked (2023)
Bond Standards, and ASEAN Taxonomy for Sustainable Finance Version 2 (2023) administered
by ASEAN Capital Markets Forum;

1
http://www.un.org/sustainabledevelopment/sustainable-development-goals/

4
 • POJK No. 51/20172 and POJK No. 18/20233 administered by the Indonesia Financial Services
Authority (OJK); and
• Taxonomy for Sustainable Finance in Indonesia (Taksonomi Untuk Keuangan Berkelanjutan
Indonesia) (2024) administered by the Indonesia Financial Services Authority (OJK).
Alignment of sustainable financing with the standards and principles is presented in the Framework
through the following structures:
• Use of Proceeds;
• Process for Proposal Evaluation and Selection;
• Management of Proceeds;
• Reporting; and
• External Review.
This Framework is forward looking and applies to transactions proposed after this framework is
published. In addition, this Framework is a living document; any potential changes to this Sustainable
Finance Framework with regards to the standards and principles will be incorporated in future
versions of the Framework.

To be eligible for inclusion in sustainable financing, Bank Mandiri must first identify the nature of the
proposal to be financed following the flowchart below, as different governance approaches should be
taken to different financing purposes.

Bank Mandiri have defined the criteria and definition of eligible sustainable activity into Green,
Transition, and Social as below:

Green Activity
Green activities are those that promote environmental sustainability or exhibit very low or zero
emissions and are in alignment with the commitment to limit the global temperature rise to below
2°C, aiming ideally for a 1.5°C increase, inline with national target.

2
Pedoman Teknik POJK No. 51/2017 provides technical guidance on definition and examples of Kategori
Kegiatan Usaha Berkelanjutan (KKUB)
3
Regulation on issuance and requirements for debt and sukuk securities based on sustainability.

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Transition Activity
Transition activity involves activities that currently not yet aligned with the commitment to limit the
global temperature rise to below 2°C, aiming ideally for a 1.5°C increase, or inline with national
target, but aim to achieve significant emission reductions in the short or medium term within a
specified timeframe, by replacing carbon-intensive options or facilitate the broader use of less
carbon-intensive alternatives.

Social Activity
Social activities are activities that directly aim to address or mitigate specific social issues and seek to
achieve positive social outcomes, especially for target populations. The listed social activities are
aligned with the nation’s program.4

2.1 Use of Proceeds Financing

Use of Proceeds Financing means that the proceeds from the financing must be used for
predetermined projects or initiatives that demonstrably contribute to sustainability objectives. It is
eligible to be classified as sustainable finance if the activities meet one of the Eligible Activities criteria,
whether it is green, transition, or social activity as defined in “Section 3. Eligible Activities” of the
Framework.

2.2 Sustainability Linked Financing

Sustainability Linked Financing aims to support a client’s efforts in improving its sustainability profile
over the term of the loan, financing that isn't allocated for a specific sustainable project or activity.
They do so by aligning loan terms to predetermined sustainability goals, which is measured through
Key Performance Indicators (KPIs) and evaluated against Sustainability Performance Targets (SPTs).

The guideline for Sustainability Linked Financing is as below:

Selection of KPIs

KPIs must be linked to the core sustainability and business strategies of the client and address relevant
environmental, social, and/or governance (ESG) challenges in the relevant industry sector. Client
management must have control over the selected KPIs to ensure it is achievable by client actions

Client should provide a KPIs that have a clear definition, and include applicable scope or parameters,
as well as calculation methodology that are measurable and able to be benchmarked against an
industry standard and/or industry peers where feasible.

Calibration of SPTs

Client Sustainable Performance Targets (SPTs) per each of the selected KPIs should ensure material
improvement in the respective KPIs. The defined SPTs should be ambitious and be beyond both a
“business as usual” trajectory and regulatory required targets, consistent with the client’s overall
sustainability strategy on a predefined timeline, set before or concurrently with the origination of the

4
Indonesia is committed to the successful implementation of the Sustainable Development Goals (SDGs) by
achieving the 2030 development agenda as published in https://sdgs.bappenas.go.id/website/wp-
content/uploads/2021/02/Roadmap_Bahasa-Indonesia_File-Upload.pdf

6
loan. Where possible, the target should be able to be compared to a benchmark or an external
reference.

Client SPTs settings should be based on its recent performance levels, or be based on a combination
of benchmarking approaches of SPTs below:

a. It is recommended to use client’s own performance over time-period that agreed between
client and Bank Mandiri on the selected KPI(s);
b. Client’s peers, i.e., the SPT’s relative positioning versus client’s peers’ where available
(average performance, best in class performance) and comparable, or versus current industry
or sector standards; and/or
c. Reference to the systematic reference, or official national/regional/international targets
(Indonesia Sustainable Development Goals, Indonesia Long-Term Goal, Indonesia Net-Zero
Target, etc.) or to recognized best-available-technologies or other proxies to determine
relevant targets across ESG themes.

The client also needs to provide Bank Mandiri with information related to:

a. The timelines for the target achievement, including the target observation date(s)/period(s),
the trigger event(s) and the frequency of review of the SPTs;
b. Where relevant, the baseline or reference point selected for improvement of KPIs as well as
the rationale for that baseline or reference point to be used (including date/period);
c. Where relevant, the situations where pro-forma adjustments or recalculations of baselines
and/or recalculation of KPIs and subsequent SPTs will take place;
d. Where possible and taking competition and confidentiality considerations into account, how
the clients intend to reach the defined SPTs, e.g., by describing its ESG strategy, supporting
ESG governance and investments, and its operating strategy, i.e. through highlighting the key
levers or type of actions that are expected to drive the performance towards the SPTs as well
as their expected respective contribution, in quantitative terms wherever possible; and
e. Any other key factors and dependencies beyond the client’s direct control that may affect the
achievement of the SPTs.

Client also expected to obtain Second-Party Opinion or Internal Expertise for the proposed proposal
before submitting to Bank Mandiri, to assess the relevance, robustness, and reliability of selected KPIs,
the rationale and level of ambition of the proposed SPTs, the relevance and reliability of selected
benchmarks and baselines, and the credibility of the strategy outlined to achieve them.

Loan Characteristic

Bank Mandiri financing structure and characteristic of Sustainability-Linked financing will be linked to
whether the selected predefined SPT(s) are met. The achievement or non-achievement of SPTs will
trigger a change in the financial or structural characteristics of the instrument that will be
communicated and agreed between Bank Mandiri and the clients.

Reporting

Client should regularly report an up-to-date information to Bank Mandiri based on the agreed period,
which must be sufficient to allow monitoring of SPTs performance and determine that the SPTs remain
ambitious and relevant to the client’s business. Sustainability confirmation statement with verification

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report should be attached as part of the reporting, outlining the performance against the SPTs for the
relevant year and the related impact, and timing of such impact on the loan’s economic characteristics.

The report includes details of any underlying methodology of SPT calculations and/or assumptions
taken, for Bank Mandiri to review the report.

Verification

Client must obtain independent and external verification of the performance level against each SPT
for each KPI for any date/period relevant for assessing the SPT performance, Bank Mandiri will use
this information to evaluate client’s performance, that will lead to a potential adjustment of the loan
economic characteristics, until after the last SPT trigger event of the loan has been reached.

The verification is a mandatory element to be completed by the client, and given to Bank Mandiri in
timely manner, client should obtain the verification from a qualified external reviewer with relevant
expertise, such as an auditor (by way of limited or reasonable assurance), environmental consultant
and/or independent ratings agency.

2.3 Sustainable Client Financing

This type of financing is applicable for client entity-level financing, its purpose is to support client’s
business that promote environmental sustainability or aim towards sustainable economy, relevant
with the eligible activity criteria outlined in the framework, and applicable regulations or international
best practices.

Client’s is eligible for financing if the core business OR derived 90% or more of its revenue, from
activities that are relevant to eligible activities criteria under this Framework.

2.4 Corporate-in-Transition Financing

This type of financing is applicable for client entity-level financing, with the purpose to support clients
to transition or align their business and/or operations with pathways in line with the objectives of the
Paris Agreement or NDC target, which measured through strategy and target that have been approved
by Bank Mandiri.

Client’s is eligible for financing if demonstrating a clear climate transition strategy with measurable
target, and has evidence in operationalizing the transition strategy and target in the last 12 months
(e.g., divested from carbon-intensive assets, diversified from carbon-intensive activities, or
decarbonized by demonstrated overall reduction in emission intensity)

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3. Eligible Activities
Bank Mandiri embraces its responsibility as a leading player in transitioning our region towards a low-
carbon, climate-resilient future. We conduct a comprehensive assessment to ensuring alignment with
Eligible Green, Transition, and Social criteria. The client needs to fulfill the applicable eligibility criteria
according to the selected activity label below:

3.1 Eligible Green and Transition Activities

This section sets out eligible green and transition activities including any specific excluded activities
that would render a specific activity ineligible as a green or transition initiative. The activity should
align with Green Theme, such as:

1. Renewable Energy;
2. Energy Efficiency;
3. Pollution Prevention and Control;
4. Environmentally Sustainable Management of Living Natural Resources and Land Use;
5. Terrestrial and Aquatic Biodiversity;
6. Clean Transportation;
7. Sustainable Water and Wastewater Management;
8. Climate Change Adaptation;
9. Eco-efficient Production;
10. Green Buildings; and
11. Other Sustainable-related Activities.

Additionally, it specifies the Sustainable Development Goals (SDGs) associated with each topic to the
best of its ability, emphasizing the primary SDG impact of each activity. Bank Mandiri has provide
several selected sectoral economic activities that can be labeled as “Green” or “Transition” in
Appendix 8.1: Eligible Green and Transition Activities.

If the client submit proposal where the activities is not presented in the list on Appendix 8.1, Bank
Mandiri will assess the alignment of the proposed project activity with relevant standards and
principles used in the Framework.

3.2 Eligible Social Activities

Social activities considered eligible within this Framework are those promoting social projects aligned
with standards and principles. These activities prioritize the improvement of basic infrastructure,
access to essential services, affordable housing, employment generation, food security, and
socioeconomic advancement to target populations or target areas. Examples of target populations
and target areas include but are not limited to, those that are:

1. Living below the poverty line;

2. Excluded and/or marginalized populations and/or communities;
3. Vulnerable groups, including as a result of natural disasters;
4. Unemployed;
5. People with disabilities;
6. Migrants and/or displaced persons;
7. Undereducated; and
8. Underserved, owing to a lack of quality access to essential goods and services.

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Bank Mandiri has identified several economic activities that can be labeled as “Social” in Appendix
8.2: Eligible Social Activities.

3.3 Exclusions
In managing our sustainability risks, we have set out minimum requirements that clients are expected
to fulfill when seeking financing from Bank Mandiri. We restrict financing to clients who are found to
be engaging in activities that Bank Mandiri has set out as prohibitions as per Bank Mandiri’s Exclusion
List. For example:

• Prohibit financing projects that endanger the environment;

• Illegal logging;
• Prohibit Peatland financing;
• Prohibit Gambling business;
• Prohibit Pornography & Human Right Violations; and
• Prohibit Drugs and Narcotics.

4. Process for Proposal Evaluation and Selection

The process of selection and evaluation for a proposal to qualify for sustainable finance is a critical
component designed to ensure that all financed proposal meet and adhere to the highest standards
of sustainability. Client should provide sustainable-related information in their proposal to
communicate to Bank Mandiri the information below:

1. The environmental and social sustainability objectives of the proposal, within the context of
the client’s business objectives, strategy, policy, and/or their business process relating to
environmental and social sustainability;
2. The process on how the client determines the proposal can fits within the sustainability
objectives, and its alignment with relevant official or market-based taxonomies, related
eligibility criteria, including, if applicable, exclusion criteria, and disclose any standards or
certifications referenced for the proposal. The client may involve third-party verification in
their process as and when needed; and
3. Complementary information on the process where the client identifies and manages
perceived social and environmental risks associated with the relevant proposal, and the
process to identify the mitigants for the potential risk. The mitigants should include clear and
relevant trade-off analysis as part of the information, and how the client monitors the
potential risks.

The nominated proposal will be reviewed by Bank Mandiri by:

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 1. Preliminary screening of activity mentioned in the proposal with Bank Mandiri exclusionary
criteria and alignment with sustainability criteria mentioned in Section 2 and 3. Projects that
do not meet fundamental ESG standards are immediately excluded from Sustainable
Financing scheme;
2. Based on the information provided in the proposal, Bank Mandiri will review whether the
proposal qualify as sustainable financing through a comprehensive evaluation of the
proposal's environmental and social aspects. If required, the client have to provide
justification, third-party verification, and additional supporting information to complete the
process; and
3. The eligible sustainable projects will then go through Bank Mandiri Credit Committee Review
process to assess financial viability, identify, measure, and monitor risks, determine risk
management policies and strategies. This will determine whether the proposal are approved
for sustainable financing.

5. Monitoring & Management of Transactions

Bank Mandiri will track transactions of its sustainable financing through Bank Mandiri's internal
information systems to ensure transparency and accountability.

Bank Mandiri will conduct periodic monitoring of the sustainable finance transaction to assess their
progress and adherence to the Framework's criteria. This monitoring process will look at the
information the client provided along with third-party verification as and when needed. This may
involve desk reviews, field visits, and engagement with project developers and beneficiaries to identify
any potential issues, risks, or challenges and ensure timely corrective actions are taken.

6. Reporting
Bank Mandiri upholds the value of importance of transparency and accountability in the bank’s
sustainable finance initiatives, and hence, commits to providing comprehensive and detailed reports
on its sustainable finance activities. In reporting sustainability financing, the reports provide
quantitative and qualitative information about the Bank Mandiri's efforts in maintaining and
enhancing economic, social, and environmental performance, along with the impact of the efforts.

Bank Mandiri leverages both internal and external data to track and report progress on its sustainable
financing activities. The reported data will be assessed and approved by relevant business teams and
subject to reviewed by dedicated sustainable finance or sustainability teams if necessary.

The reporting of Bank Mandiri’s sustainable financing activities is part of the Annual and Sustainability
Report, in accordance with POJK No. 51/2017, where Bank Mandiri is obliged to submit a periodic
report at least once a year.

7. External Review
Bank Mandiri has commissioned a Second Party Opinion to assess the Framework's alignment with
relevant international standards. This Second Party Opinion is currently under development and will
be updated after getting an opinion from Second Party Opinion.

To ensure continuous adherence to the methodology outlined in this Framework for all issued
Sustainable Financing Instruments, Bank Mandiri will appoint Second Party Opinion provider as an
annual verifier.

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8. Appendix
8.1 Eligible Green and Transition Activities
Financing based on Use of
Sector Topic Eligible Activities Proceed Label Theme SDGs
Green Transition
Electricity, Gas Electricity Operational activities of electricity generation from Yes Renewable
and Generation renewable energy sources such as: energy
Geothermal 1. Solar energy
2. Wind power
3. Ocean energy (tidal, wave)
4. Hydropower
5. Geothermal energy
6. Bioenergy
7. Waste-to-energy from Municipal Solid Waste
(MSW)5
Operational activities of electricity generation from: Yes Renewable
1. Fossil gaseous fuels that emit low lifecycle GHG energy
emissions align with applicable regulations or
Taxonomy.
2. Co-firing Biomass for Steam Power Plants (PLTU)6
Transmission Businesses which facilitate electricity transmission and Yes Renewable
and distribution based on renewables; repurposing gas energy
Distribution networks for low carbon gases; constructing pipelines
for transporting hydrogen or low carbon gases; and
operating centralized heating/ cooling systems to
promote decarbonization.

5
Aligned with Presidential Regulation No. 35 of 2018 on Accelerating the Construction of Waste Processing Installations into Electrical Energy Based on
Environmentally Friendly Technology
6
In case the SNI is not yet available and/or does not comply with the required Biomass Fuel (B3m) standards, the Minister through the Director General can
determine the B3m standards and quality for power plants by considering technological developments, producer capabilities, consumer capabilities and needs,
specific conditions at each PLTU location and occupational safety and health as well as environmental management, as mentioned in Regulation of the Minister
of Energy and Mineral Resources of the Republic of Indonesia (ESDM) No. 12/2023

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 Financing based on Use of
Sector Topic Eligible Activities Proceed Label Theme SDGs
Green Transition
Businesses which facilitate electricity transmission and Yes Renewable
distribution that are powered by both renewable energy
energy sources and fossil fuels.
Co-generation Construction and operation of facilities co-generating Yes Energy efficiency
of heat/cool electricity and heat/cool from Renewable Energy
and power including Bioenergy (biomass, biogas, biomethane, or
bioliquids).
Construction, refurbishment, and operation of Yes Energy efficiency
combined heat/cool and power generation facilities
using fossil gaseous fuel that emit low lifecycle GHG
emissions align with applicable regulations or
Taxonomy.
Energy Development and implementation of products or Yes Energy efficiency
Efficiency technology that reduce energy consumption or
mitigate substantial GHG emissions over the baseline
emissions. Examples include, but are not limited to:
1. Energy-efficient lighting (e.g., LEDs)
2. Improvement in energy services (e.g., smart grid
meters)
3. Efficiency improvements for transmission and
distribution of energy (e.g., smart grids)
4. Centralized energy control system
Carbon Planning, design, development, implementation, and Yes Pollution
Capture operations related to carbon capture, utilization and/or prevention and
storage (“CCU”/ “CCS”), including bioenergy and carbon control
capture and storage (“BECCS”) and direct air capture
(“DAC”). CCU where captured carbon is intended for
enhanced oil recovery is excluded
Energy storage Planning, design, development, implementation, and Yes Energy efficiency
technologies operations related to all electrical storage systems
which are available to provide power to electrical
networks or loads, examples include, but are not
limited to:

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 Financing based on Use of
Sector Topic Eligible Activities Proceed Label Theme SDGs
Green Transition
1. Electrochemical, such as battery storage, hydrogen
storage (such as hydrogen storage tanks),
supercapacitors or ultracapacitors
2. Mechanical, such as pumped hydro, flywheels,
compressed air energy storage (CAES)
3. Thermal, including Underground Thermal Energy
Storage (UTES) or Aquifer Thermal Energy Storage
(ATES)
4. Power-to-gas (such as power-to-hydrogen, or
power-to-synthetic gas, ‘syngas’)
Storage of low-carbon gases, including the operation of Yes Energy efficiency
facilities related to low carbon hydrogen, renewable-
derived gases, fossil gases or mixtures
Bioenergy Operational of facilities producing liquid biofuel, solid Yes Renewable
and gaseous biomass for heating, cogeneration, and energy
electricity production
Natural and Procurement and distribution of Natural and Artificial Yes Pollution
Artificial Gas Gas that has an emissions reduction roadmap and prevention and
achieved at least a Green PROPER rating or consistently control
met aspects of pollution control, environmental
damage, and management of Hazardous and Non-
Hazardous Waste as per the criteria of Green PROPER
Production of Construction or operation of facilities that produce Yes Renewable
heat/cool heat/cool from renewable non-fossil gaseous and liquid energy
fuels
Coal phase-out Acceleration of coal phase-out that aligned with criteria Yes Pollution
acceleration specified in Taxonomy or applicable Regulation prevention and
control

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 Financing based on Use of
Sector Topic Eligible Activities Proceed Label Theme SDGs
Green Transition
Agriculture and Sustainable 1. Agricultural production of low emission rice Yes Environmentally
Farming Agriculture variety7 and organic agriculture product and sustainable
supporting service8 management of
2. Agricultural techniques to improve productivity living natural
such as System Rice Intensification, vertical resources and
farming, hydroponics, green house farming, smart land use
land use management and reduce agriculture
emission through soil management, crop rotation,
dry agriculture technique, drip irrigation
technique9 and disease resistant, high yield, and
low methane crop seed10
Genetically modified organism (GMO) crops, dry
agriculture practice in peatland area, and purchase of
agriculture equipment that runs directly on fossil fuel
such as those powered by diesel are excluded
Sustainable 1. Development, maintain and improvement of Yes Environmentally
Farming Animal waste management system, biogas sustainable
production, and organic fertilizer from cattle management of
manure 11 living natural
2. Practice of Organic Farming or livestock production resources and
and or integrated agriculture-farming-forestry land use
activity

7
Aligned with Indonesia Long Term Strategy for Low Carbon and Climate Resilient 2050, ENDC Section Agriculture, and Ministry of Agriculture Strategic Planning
2020-2024 to support GHG emission reduction by leverage low emission rice variety
8
These activities are eligible if meeting Indonesia National Standard for Organic Agriculture System SNI 6729: 2016 and Ministry of Agriculture Regulation no
64/Permentan/OT/.140/5/2013 about Organic Agriculture System
9
These activities are eligible if meeting Good Agricultural Practices Global GAP Certification
10
These activities should comply with crop seed regulation by Ministry of Agriculture No 990/HK.150/C/05/2015 about Technical Guidance for Crop Seed
Production
11
These activities are eligible if meeting Ministry of Agriculture Decree No. 261/KPTS/SR.310/M./4/2019 about minimum technical requirement of organic
fertilizer, Indonesia National Standardization SNI 9107:2022 about Biogas Production, and Indonesia National Standard for Organic Farming System SNI 6729:
2016 section farming

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 Financing based on Use of
Sector Topic Eligible Activities Proceed Label Theme SDGs
Green Transition
Sustainable 1. Sustainable plantation of palm oil cultivation, Yes Environmentally
Plantation plantation, fertilization, and harvesting including sustainable
implementation of organic fertilization12 management of
2. Sustainable plantation activity of cultivation, living natural
plantation and harvesting of fruits, vegetables, and resources and
agri-commodities (rubber, coffee, cocoa, coconut, land use
tea, coffee) including implementation of organic
fertilization13
Crude Palm Oil Fresh Fruit 1. Any activities of Fresh Fruit Brunches collection Yes Circular economy
Processing and Brunches origination from certified plantation14 adapted
Cooking Oil Collection and 2. Ecofriendly Palm Oil Milling15 products,
Manufacturing Milling production
technologies and
processes
Palm Oil Palm oil manufacturing includes refineries processing Yes Circular economy
Manufacturing and Production of palm oil derivatives such as cooking adapted
oil, margarine, and other product16 products,
production

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These activities are eligible if meeting ISPO (Indonesia Sustainable Palm Oil) and or RSPO (Roundtable of Sustainable Palm Oil) ) for upstream, proved by P&C
certification. It is also stated in POJK 51 and Indonesia President Regulation no 44 of 2020 and Ministry of Agriculture regulation no 38 of 2020 about ISPO
certification. Organic fertilization practices in plantation is encouraged since it is aligned with Indonesia Long Term Strategy for Low Carbon and Climate Resilient
2050 agenda
13
These activities are eligible if meeting Forest Stewardship Council (FSC) certification for rubber plantation; any plantation that eligible for one of following
certification: organic, fair trade certified, UTZ certified, Rain Forest Alliance, Bird Friendly, 4C Association, CAFÉ. Organic fertilization practices in plantation is
encouraged since it is aligned with Indonesia Long Term Strategy for Low Carbon and Climate Resilient 2050 agenda
14
Certified ISPO and or RSPO with Principle and Criteria Scheme (upstream)
15
Milling activity is eligible if comply with ISPO or RSPO with SCC (Supply Chain Certification) or ISCC (International Sustainability and Carbon Certification). Milling
facility must obtain PROPER (Program Penilaian Peringkat Kinerja Perusahaan dalam Pengelolaan Lingkungan Hidup) minimum green level from MoFE. ISO 140001
certification and Green Industry Certification from Ministry of Industry is favorable
16
Manufacturing activity is eligible if comply with ISPO or RSPO with SCC (Supply Chain Certification) or ISCC (International Sustainability and Carbon Certification).
Manufacturing facility must obtain PROPER (Program Penilaian Peringkat Kinerja Perusahaan dalam Pengelolaan Lingkungan Hidup) minimum green level from
MoFE. ISO 140001 certification and Green Industry Certification from Ministry of Industry are favorable

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 Financing based on Use of
Sector Topic Eligible Activities Proceed Label Theme SDGs
Green Transition
technologies and
processes
Forestry Afforestation, 1. The establishment of forest through planting Yes Terrestrial and
Reforestation, and/or deliberate seeding on land that, until then, aquatic
Rehabilitation, was under a different land use, implies a biodiversity
Restoration, transformation of land use from non-forest to conservation
Reclamation forest or forest to forest
2. Maximizing the use of unproductive lands (idle
lands) for the establishment of forest, agriculture,
or plantations
3. Any intentional activity that initiates or accelerates
the recovery of an ecosystem/land coverage from a
degraded state17
4. The re-establishment of forest through planting
and/or deliberate seeding on land classified as
forest. It implies no change of land use, includes
planting/seeding of temporarily un-stocked forest
areas as well as planting/seeding of areas with
forest cover
5. Reclamation and post mining activity in forest
area18

17
MoFE Regulation No. 23 of 2021 about Implementation of Forest Land and Rehabilitation
18
MoFe Regulation No. 3 of 2020 about Amendments to Law Number 4 of 2009 concerning Mineral and Coal Mining section strengthening policies related to
environmental management in mining business activities, including the implementation of reclamation and post-mining and MoFE Regulation No.
P.27/MENLHK/SETJEN/KUM.1/7/2018 about Guidelines for borrowing and using forest areas

17
 Financing based on Use of
Sector Topic Eligible Activities Proceed Label Theme SDGs
Green Transition
Protection and Restoration of upland and lowland peatlands to Yes Environmentally
Restoration of enhance the sequestration and long-term storage of sustainable
Peatland carbon from the atmosphere19 management of
living natural
resources and
land use
Terrestrial and 1. Preservation, conservation and/or restoration of Yes Terrestrial and
Aquatic biodiversity and valuable natural habitats (e.g., aquatic
Biodiversity peatland, wetlands, mangrove swamp) biodiversity
Conservation 2. Preservation and/or restoration of biodiversity in conservation
urban areas20
3. Wildlife habitat management (including planting
and expanding hedgerows), rehabilitation,
restoration, and conservation of ecosystems from a
degraded state and rewilding projects
Sustainable 1. The sustainable management, seeding, cultivation, Yes Environmentally
Commercial harvesting, and mechanized utilization of forest sustainable
Forest resources for wood and non-wood products that management of
Management comply with Indonesia policy and strengthen by living natural
eco-friendly certification21 resources and
2. Practice of social forestry (hutan adat and hutan land use
desa)22
3. Any enhancement of current forest management
and utilization to improve productivity such
agroforestry or tumpangsari23

19
These activities are eligible if meeting Ministry of Forestry and Environment in Minister of Environment and Forestry Regulation No.
16/MENLHK/SETJEN/KUM.1/2/2017 concerning technical guidelines for peat ecosystem restoration
20
It is required to comply Ministry of Agrarian and Spatial Planning No. 14 of 2022 about Open and Green Space Regulation
21
Commercial forestry products certified under one of the following schemes: Forest Stewardship Council (“FSC”), Indonesia Forestry Certification Cooperation
(IFCC), Programme for the Endorsement of Forest Certification (PEFC), The Timber Legality Verification System, SVLK, certified projects that support the
development of carbon offsets such as biological sequestration projects
22
FOLU Net Sink 2023. Ministry of Environment and Forestry
23
Aligned with APHI (Asosiasi Pengusaha Hutan Indonesia) about Production Forest Development Roadmap

18
 Financing based on Use of
Sector Topic Eligible Activities Proceed Label Theme SDGs
Green Transition
New natural forest and peatland conversion for land
use change is excluded from Eligible Activities
Transportation Low-carbon Purchase, financing, leasing, rental, and operations of Yes Clean
Land and low-carbon passenger or freight transportation transportation
Water (Electric, Hydrogen, and Hybrid Engine) through land,
Transport sea, and electrified train
Low-carbon Purchase, financing, leasing, rental, and operations of Yes Clean
Aviation low-carbon energy efficient aircraft such as: transportation
1. Aircrafts with electric engines or hydrogen fuel
cells
2. Aircrafts powered by low GHG fuel (e.g. biofuel,
synthetic fuels)
Low-carbon Planning, design, construction / development, Yes Clean
Infrastructure maintenance, and repair of Supporting Facilities and transportation
Infrastructure for low-carbon transportation
Vehicle Energy Planning, design, construction / development, Yes Clean
Efficiency procurement, and operations of: transportation
1. Vehicle, rail, or boat fleet upgrades, which include
replacement of engines with zero-emission
technologies. The vehicles require to emitting
Zero-Direct Emission (Including Electric or Green
Hydrogen Technologies)
2. Hybrid engines and technologies
Transportation Planning, design, development, procurement, and Yes Energy efficiency
System operations of activity that deliver substantial GHG
Development emissions savings:
1. ICT that improves asset utilization, flow and modal
shift
2. Intermodal freight facilities
3. Terminals to improve journey times
4. Smart freight logistics
5. Multi-modal logistics hubs
6. Integration of transport and urban development
planning

19
 Financing based on Use of
Sector Topic Eligible Activities Proceed Label Theme SDGs
Green Transition
Biofuel Planning, design, construction/ development, Yes Renewable
procurement, and operations of facilities producing energy
biofuel, biomass, biogas including fuel preparation
process facilities for transport

Construction Green Construction of new development or renovation of Yes Green buildings

buildings24 existing buildings must meet one of the following
conditions:
1. Receive “Sertifikat Bangunan Gedung Hijau”25; OR
2. Receive “Sertifikat Bangunan Ramah
Lingkungan”26; OR
3. Have or are intended to meet the required
certification rating of at least one of the following,
but are not limited to:
a. BREEAM: "Excellent" or above
b. LEED: "Gold" or above
c. Greenship: "Gold" or above
d. EDGE: Certified
e. Building and Construction Authorities (BCA): 85
or above

For building projects in developing but not high-income

countries; Bank Mandiri may allow one level below the
levels specified above (e.g., LEED Silver).

As per the UN WESP report, Indonesia is classified as a

Developing, Upper-Middle Income country.

24
Green buildings are environmentally friendly buildings that meet the national, regional, or international standards and/or certifications
25
In alignment with Performance Assessment of Green Building decreed by Ministry of Public Works and Housing Regulation No. 21 of 2021
26
In alignment with Green Building Requirements decreed by the Ministry of Environment Regulation No. 8 of 2010

20
 Financing based on Use of
Sector Topic Eligible Activities Proceed Label Theme SDGs
Green Transition
Bank Mandiri may also consider other certification
schemes if such schemes are evaluated to be
equivalent and/or internationally recognized
certification schemes
Residentials, Renovation/refurbishment/retrofit of existing Yes Energy efficiency
Commercial, buildings: construction and civil engineering works
Institutional, including the preparation that leads to a reduction of
Public, and primary energy demand (PED)27
Non- Application of measures to increase the energy Yes Energy efficiency
Infrastructure efficiency of buildings and/or enabling use/production
Buildings of renewable energies and energy-efficient
technologies
Development/construction of new Green Residential Yes Green buildings
Community (Hunian Hijau Masyarakat (H2M))28
Green Road Construction of Road that aligned with Green Road Yes Climate change
Infrastructure29 criteria mentioned in relevant regulation, and received adaptation
relevant Green Road rating or certification (e.g., Green
Toll Road Indonesia certificate or other relevant
certification)
Network Telecom towers upgrades and modernization of Yes Energy efficiency
Infrastructure broadband network infrastructure, including cooling
systems to enhance energy efficiency

27
If the building has already achieved a credible level of certification, then the retrofit expenditures that result in improvement of energy efficiency may be
considered eligible
28
In alignment with Ministry of Public Works and Housing's No. 21 of 2021, applies if the construction of H2M results to a collective reduction in Energy and
Water consumption by 25% and 10% respectively from previous months
29
In alignment with Ministry of Public Works and Housing's No. 05 of 2015, related to sustainable construction implementation and “SE Menteri PUPR No.
04/SE/M/2018”. The project eligible if received certification related to green road implementation

21
 Financing based on Use of
Sector Topic Eligible Activities Proceed Label Theme SDGs
Green Transition
Oil and Gas Carbon Transport CO2 Yes Pollution
Industry Capture and 1. CO2 transported from the capture point to the prevention and
Storage for Oil injection point does not cause leakage above 0.5% control
Mining of the CO2 mass per year
2. CO2 is conveyed directly or indirectly to a
permanent storage location that meets the criteria
for underground geological CO2 storage
3. Implementation of a leakage detection system and
the existence of a Measurement, Reporting, and
Verification (MRV) plan that includes stages
organized according to referenced standards and
good engineering practices

Underground Permanent Geological CO2 Storage

1. Conducting an assessment of the storage complex
potential and its surroundings, or exploration is
carried out to determine if the geological formation
is suitable for use as a CO2 storage site
2. For the operation of underground geological CO2
storage sites, including closure and post-closure
obligations: a leakage detection system is
implemented to prevent releases during operations
3. There is a monitoring plan for injection facilities,
storage sites, and the surrounding environment,
with routine reports overseen by the relevant and
competent national authorities
4. Exploration and operation of storage sites comply
with applicable standards
Supporting Research, development, and innovation for CCS- Yes Pollution
Activities related technologies prevention and
control
Activities that meet criteria 1 and 3 or criteria 2 and 3:
1. Research, development, or innovation activities for
technologies, products, or other solutions
dedicated specifically to CCS;

22
 Financing based on Use of
Sector Topic Eligible Activities Proceed Label Theme SDGs
Green Transition
2. Implementation of technologies, products, or other
solutions under research for CCS, with the potential
to overall reduce GHG emissions when
commercialized;
3. If technologies, products, or other solutions under
research, development, or innovation:
a. At Technology Readiness Level (TRL) 1 to 7,
then the lifecycle GHG emissions are calculated
by the researching party; or
b. At TRL 8 or higher, then the lifecycle GHG
emissions are calculated using ISO 14067:2018
or ISO 14064-1:2018 and verified by an
independent third party.
Metal Ore Low-Carbon, Activities in resulting Low-Carbon and Low Mining Yes Pollution
Mining Low Energy Activities, such as: prevention and
Mining 1. Invest in minerals that are essential to driving control
green growth, for example copper and lithium
2. Increase in recycling
3. Energy and process efficiency
4. Renewable power sources
5. Fuel switch (such as hydrogen) and electrification
of equipment
6. Low carbon alternative technologies
7. Carbon capture, utilization, and storage (CCUS)
8. Carbon removal solutions
Basic Metal Low-Carbon, Activities in resulting Low-Carbon and Low Energy Iron Yes Energy efficiency
Industry Low Energy and Steel Industries, such as:
Iron and Steel 1. Manufacturing of key components, equipment,
and machinery for renewable energy technologies
2. Development and manufacturing of low-carbon
technologies that substantially reduce GHG
emission
3. Transition of industrial production to low-carbon
and high-energy efficient production
4. Electrification of ancillary equipment

23
 Financing based on Use of
Sector Topic Eligible Activities Proceed Label Theme SDGs
Green Transition
Processing Manufacture 1. Utilization of new cement chemistries or new Yes Pollution
Industry – Non- of Cement30 concrete chemistries using less cement input prevention and
Metal 2. Manufacture of cement clinker, cement, or control
alternative binder
3. Recycling of un-hydrated cement and reuse of
concrete
4. Implementation of decarbonization technologies of
cement manufacturing (e.g., switch to alternative
fuels, carbon capture and storage, blended
cement, kiln electrification from renewable energy
source). Alternative fuels such as RDFs, plastic- or
tire-derived fuels and/or other carbon rich waste
inputs without sustainable sourcing policies is
excluded.

30
In alignment with Regulation of the Minister of Industry of the Republic of Indonesia No. 26 of 2018 about Green Industry Standards (SIH) for the Portland
Cement Industry, applies if manufacturing of cement resulting emission intensity less than 750 kg CO2/ton cementitious

24
8.2 Eligible Social Activities
Theme Sub-theme Eligible Activities SDGs
Affordable Telecommunication 1. Development of telecommunication infrastructure and services to connect the rural
basic infrastructure and areas and the smaller islands to such services
infrastructure services 2. Subsidized internet access
Transportation 1. Development of roads or other transportation infrastructure to improve connectivity in
infrastructure underdeveloped rural areas, or areas where road infrastructure is clearly inadequate.
Development and improvement of highways in both urban and rural areas, and toll booths
construction are excluded
2. Subsidized access to public transportation infrastructure
3. Development of sidewalks for public, including accessibility improvements for people with
disabilities
Energy 1. Development, expansion, or improvement of access to clean drinking water, sanitation
infrastructure and sewers. Desalination plants with dedicated onsite fossil fuel power is excluded
2. Development and expansion of transmission and distribution infrastructure that improves
access to electricity, where there is no access or access is substantially inadequate
Public 1. Development and maintenance of natural disaster control infrastructures
infrastructure 2. Rehabilitation of coastal habitats and ecosystems as a form of coastal disaster mitigation

Access to Healthcare 1. Construction, development, or maintenance of public healthcare facilities, such as

essential hospitals, clinics, health care center, pharmacies, etc.
services 2. Development/maintenance of eldercare facilities that are publicly owned or private not-
for-profit
3. Operational of community-based healthcare, mental health care or social services, such as
Posyandu, Polindes, Poskesdes
4. Supply the healthcare equipment
5. Program focusing on women's health, such as awareness programs of Keluarga Berencana
(KB) services
Education 1. Construction or development of education facilities, such as public kindergartens, schools,
vocational schools, training sessions, colleges and/or universities for target populations,
underserved communities, and people with disabilities
2. Subsidized public education programs
3. Construction or development free or public libraries
Financing and 1. Provision of access to banking and financial services in underserved populations
financial services 2. Implementation of financial literacy program

25
 Theme Sub-theme Eligible Activities SDGs
Cultural and Construction or development of cultural centers, recreational centers, museums, parks, and
Recreational other public spaces in underserved areas

Affordable Affordable Provision of affordable housing and low-income housing to target populations
housing Housing

Employment Employment 1. Employment generation through SME financing and micro financing
generation generation 2. Training and development programs aimed to improve the employability and upskilling of
target population

Food security Food security 1. Program of enhancing access to nutrition, including food and clean drinking water, to
and address malnutrition concerns for target populations in areas experiencing significant
sustainable challenges related to food security
food systems 2. Investment in the manufacture, logistics, provision and distribution of food and nutritional
supplements in rural areas or target populations
3. Educational programs focusing on nutrition, healthy eating habits, and food preparation
skills to promote healthier lifestyles
Sustainable food 1. Provision of technical capacity building and agricultural training programs for smallholder
systems farmers to improve nutritional quality and adoption of efficient farming practices from
latest technology
2. Provision of equipment and facilities that help to prevent food loss and waste, improve
productivity, and increase market access to smallholder producers
Socioeconomic Socioeconomic 1. Program that supports micro, small, and medium-sized enterprises growth and market
advancement advancement and competitiveness
and empowerment 2. Programs that promote gender equality, women's rights, and economic empowerment
empowerment

26
Sustainable Finance
Framework
27