Loan is evaluated based on a target of obtaining timber and raw materials from sources certified by the Forest Stewardship Council
DBS Bank Indonesia (DBS) has partnered with PT Sumatera Timberindo Industry (STI), a premium wooden door manufacturer, to sign the first export financing sustainability-linked loan of its kind in Indonesia.
DBS evaluated the loan based on a target to obtain timber and raw materials from sources certified by the Forest Stewardship Council (FSC). The interest rate of the export financing sustainability-linked loan will be reduced for each shipment of raw material that has an FSC certification, documenting that the raw material is responsibly sourced.
STI is also a FSC-certified company focused on responsible sourcing, manufacturing and exporting of sustainable-certified products. STI first received the FSC Chain of Custody (CoC) certification in 2008 from SGS Indonesia, the Indonesian subsidiary of an international inspection, verification, testing and certification company.
Hidayat Ang, director, PT Sumatera Timberindo Industry, says that high-quality products that are processed in a responsible and sustainable manner are becoming the way forward. “For manufacturers such as us, ESG certification is important as it boils down to our core value of operating our business sustainably and responsibly. Our products are handled responsibly at every stage of production – 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.”
As a satisfied and active user of DBS’ corporate digital banking solutions, he added that STI’s synergies with DBS in advancing sustainability not only support the company’s long-term growth but also empower people and the local community to do good for the environment.
Rudy Tandjung, Director, PT Bank DBS Indonesia, says that the bank is delighted to support companies in moving their sustainability agenda forward, as more of them are seeking business growth while considering ESG factors. “DBS has been providing banking services to STI since 2006. 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.”
Apart from the latest export financing sustainability-linked loan, DBS also provides bancassurance keyman insurance to STI.