Danamon, Adira Finance Collaborate in Tanjung Piayu Mangrove Area Development

Press Release / 02 December 2023

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Batam, December 2, 2023, - PT Bank Danamon Indonesia Tbk (Danamon), and PT Adira Dinamika Multi Finance, Tbk.  (Adira Finance) as a group are committed to being part of the climate change solution to support sustainable business development and achieve net zero carbon emissions from the companies’ operation in 2030. 

Danamon and Adira Finance also share the principle of taking an active role in campaigning to reduce carbon emission levels and preserve the environment by involving employees as volunteers. Towards the end of 2023, Danamon and Adira Finance are collaborating in developing the Tanjung Piayu Mangrove area in the industrial island of Batam by planting 32,000 mangrove trees and building supporting facilities such as wooden bridges and mangrove monitoring posts.

The collaboration was inaugurated in a ceremony held on Saturday, December 2, 2023, and was attended by Head of the Batam Protected Forest Management Unit (KPHL) Unit II, Lamhot Sinaga; Regional Corporate Officer Danamon Region Sumatra 1, Riana Suagiat; Head of HCGA Share Service Adira Finance, Awal Diyananda along with Danamon and Adira Finance volunteers. On that occasion, a Memorandum of Understanding was also signed between Danamon and the PHMU regarding the commitment to planting and monitoring mangroves and community development.

“Climate change has put the island of Batam under the threat of rising sea levels. Unfortunately, like other areas, mangrove forests which are natural defenses are suffering from looting and land conversion. It is hoped that Danamon and Adira Finance's collaboration with the local government will curb the rate of climate change and the destruction of mangrove forests, be it caused by looting or land conversion," said Regional Corporate Officer Danamon Region Sumatra 1, Riana Suagiat.

Data from the Peat and Mangrove Restoration Agency shows that around 27% of the mangrove area in the Riau Islands province is in the Batam island. Most of the damage and loss of mangrove land occurs in forest areas. The same data also shows that mangrove damage in the province affects 37,364 hectares, with 24,624 hectares of damaged mangrove land located in forest areas.

To restore and protect mangrove areas, Batam KPHL and local communities are collaborating to restore affected areas, supported by law enforcement officers to boost protection of these areas. Danamon and Adira Finance, along with the Rumpun Bakau Indah Group (RBI) are taking part in this campaign. Apart from planting mangroves, Danamon and Adira Finance are also building bridges and monitoring posts as facilities for monitoring and securing mangrove areas, especially those within forest areas.

"As a token of commitment to environmental preservation which is also part of the sustainability finance program and supports the government's program to realize Indonesia Net Zero Emission (NZE), Adira Finance is collaborating with Danamon to implement a de-carbonization program involving Gardira and Danamoners, such as planting mangroves. "With this collaboration, it is hoped that the mangrove areas in Batam’s Tanjung Piayu can recover and grow into a sustainable environment and become green land that effectively absorbs carbon emissions," said Adira Finance Head of HCGA Share Service, Awal Diyananda.

Mangroves not only function as a natural defense that protects the island from the threat of rising sea levels, but also provide shelter for various types of animals and plants that live in coastal ecosystems.

On top of that, mangroves also bring significant economic benefits. Mangroves can minimize damage due to abrasion; help ensure the abundance of fish and shrimp in the surrounding waters; and become an attractive natural tourist attraction for local and foreign tourists.

"The collaboration between Danamon and Adira Finance in developing the Tanjung Piayu Mangrove Area in Batam is tangible evidence of joint efforts to protect coastal ecosystems and reduce the effects of climate change. "By planting thousands of mangrove trees and building supporting facilities, we hope to make a positive contribution to the surrounding environment and local communities," added Riana.

With high enthusiasm and strong commitment, Danamon and Adira Finance have proven that collaboration between companies can be a catalyst for positive change and sustainability. It is hoped that this endeavor can inspire various campaigns to protect the environment for a better future.

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