Citibank, N.A. Indonesia (Citi Indonesia) has signed a collaboration agreement with Coca-Cola Europacific Partners Indonesia (CCEP Indonesia) to implement a sustainable supply chain finance (SSCF) program, amounting to approximately US$ 30 million (IDR 470.95 billion) with a 90-day tenor.
Batara Sianturi, CEO of Citi Indonesia, announced this initiative and expressed pride in the enhanced long-term partnership with Coca-Cola Europacific Partners Indonesia. The SSCF program aims to support Coca-Cola Indonesia’s suppliers by offering incentives on financing interest rates or credit. The specific interest rates depend on the sustainability scores achieved by the suppliers, and independent third-party assessments will evaluate supplier sustainability.
According to Batara, this program promotes sustainability and incentivizes suppliers to improve their sustainability practices.
Yoanna Darwin, Head of Treasury and Trade Solutions at Citi Indonesia, explained that although there are no fixed interest rates, the financing provided will be more affordable than that offered by other banks.
Yoanna further emphasized that this agreement would help CCEP Indonesia realize its sustainability ambitions by providing suppliers with affordable working capital financing.
Through the SSCF program, suppliers can prioritize their working capital position, and they receive incentives based on the interest rates charged. Citi will provide financing to the bank’s clients from the date of receipt of goods or specific service provision until the payment maturity date to the suppliers.
The financing will be covered by the suppliers at lower rates than their usual funding costs, allowing suppliers to benefit from accelerated cash flows, faster payments, and reduced financing expenses.
The program aims to engage 1,000 of Coca-Cola Indonesia’s suppliers, with 85 suppliers having already signed MoU.
Xavi Selga, President Director of Coca-Cola Europacific Partners Indonesia & Papua New Guinea, highlighted the importance of the SSCF program in enhancing sustainability.
He emphasized that SSCF strengthens CCEP Indonesia’s commitment to sustainable practices and provides financial support to Coca-Cola’s suppliers.
Xavi noted that Coca-Cola’s targets include achieving 100% packaging plastic collection by 2030, using 50% recycled PET (rPET) packaging by 2030, reducing carbon emissions by 40%, and reaching net-zero emissions by 2040 while significantly reducing greenhouse gas emissions.
