DBS Bank Indonesia inks sustainability-tied loan with Indonesian wooden door maker

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DBS Bank Indonesia has signed a sustainability-linked export financing loan with PT Sumatera Timberindo Industry (STI), a wooden-door manufacturer, in a first-of-its-kind deal in Indonesia, the bank said in a press release Wednesday.

The interest rate of the loan will be reduced for each shipment of raw material with a Forest Stewardship Council (FSC) certification, which documents the materials are responsibly sourced, DBS said.

Hidayat Ang, director of STI, said his company aimed to handle products responsibly from forest to shelf.

“With customers becoming more eco-conscious, they want to be assured that the products and services they procure adhere to traditional and civil rights and do not threaten high conservation value (HCV) areas,” he said in the statement.

Rudy Tandjung, director at PT Bank DBS Indonesia, said the bank wanted to support companies’ sustainability efforts.

“This deal demonstrates how we as a purpose-driven bank, are able to support customers through their journey to remain at the forefront of their industries even with changing expectations of stakeholders,” Tandujung said in the statement. “It is testament to our commitment to addressing social and environmental concerns through our lending activities and business practices. We want to help businesses leave a positive impact for the future.”

STI is an FSC-certified company focused on responsible sourcing, the statement said.

Earlier this year, DBS arranged green loans for CapitaLand and City Developments.

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