Indonesia’s solar project developer, SUN Energy, has secured green financing of IDR 500 billion (US$ 32 million) from PermataBank for the development of solar energy projects in Indonesia.
Chief Corporate Banking at PermataBank, Evi Hiswanto, said this green financing implementation positions PermataBank in the distribution of facilities for renewable energy projects. This is part of the bank’s commitment to mitigate climate risks and reduce carbon emissions in banking activities.
“The collaboration with SUN Energy is part of our commitment to enhance environmentally friendly financing, involving clients to promote sustainable practices and support their transition towards low-carbon and resilient climate strategies,” Evi said in a media statement on Monday, February 26, 2024.
In 2023, PermataBank disbursed credits amounting to IDR 142.2 trillion, driven by the growth of corporate credit disbursement, which reached IDR 92.7 trillion.
Dion Jefferson, Deputy CEO of SUN Energy, expressed appreciation for PermataBank’s support in accelerating the utilization of solar energy in Indonesia. He mentioned that SUN Energy has experienced significant business growth.
Jefferson stated that the financing would be used to expand solar energy development projects in the commercial and industrial sectors in Indonesia.
“SUN Energy hopes to continue providing integrated solar energy services to customers and expanding market reach to various regions in Indonesia,” said Dion.
According to him, the agreed financing facility reflects the optimism of both parties in the energy transition process aligned with climate change risk mitigation efforts. This is expected to contribute to the creation of a green business ecosystem in Indonesia.
According to the Financial Services Authority (OJK) report, the total value of sustainable financial financing in Indonesia reached IDR 913.15 trillion as of November 2020.
The majority of this financing consists of green loans totaling IDR 809.75 trillion, followed by green bonds and gender bonds amounting to IDR 59.9 trillion, and blended finance of IDR 35.6 trillion. Global sustainability bonds have the lowest value compared to other instruments, totaling IDR 7.9 trillion.
