DBS Bank Indonesia provides a Sustainability-Linked Trade Facility (SLTF) worth US$20 million (Rp326 billion) to spun-yarn and polyester manufacturing company PT Indorama Synthetics.
Lim Chu Chong, President Director of DBS Bank Indonesia, said that the sustainable credit facility or SLTF was designed in line with Indorama’s sustainability targets, namely supporting their efforts to improve performance in the environmental, social and governance (ESG) sector.
Key performance indicators related to this facility include reductions in Scope 1 and Scope 2 greenhouse gas (GHG) emissions intensity, reductions in energy use, and improvements in water use efficiency.
Achieving these targets will enable Indorama to obtain more profitable financing, while strengthening Indorama’s commitment to sustainable business practices.
“Based on our aspiration to become the Best Bank for a Better World, we integrate ESG principles into all aspects of our operations, so that we can have a positive impact on business, the environment and society,” Lim Chu Chong said in a statement on Wednesday, January 15, 2025.
Vishnu Baldwa, Managing Director and Group Chief Financial Officer of Indorama, appreciated the measures taken by both companies to partner in the long term.
He assessed that this facility not only supports the company’s trade financing needs, but also encourages commitment to achieving measurable ESG improvements in all aspects of Indorama’s operations.
“Indorama has always been committed to creating a sustainable future and we are proud to join hands again with DBS Bank Indonesia to make it happen,” Vishnu said.
Earlier in 2024, DBS Bank Indonesia and Indorama signed a US$10 million credit facility to facilitate the transition from coal-fired power plants and improve energy efficiency at the Purwakarta plant, West Java, as part of the mesures to contribute to reducing Indorama’s carbon footprint.
Meanwhile, DBS Bank is committed to sustainability through concrete measures, by becoming the first Singapore bank to commit to achieving net zero emissions by 2050 or sooner.
