Newsroom

DBS Bank Indonesia and PT Sumatera Timberindo Industry (STI) sign export financing sustainability-linked loan in Indonesia


***

Represents first export financing sustainability-linked loan of its kind in Indonesia

SINGAPORE,24 July 2019 -

Committed to supporting companies in their sustainability efforts, DBS Bank Indonesia (DBS) has partnered with PT Sumatera Timberindo Industry (STI/ ‘Wira Door’), a leading premium wooden door manufacturer, to sign the first export financing sustainability-linked loan[1] 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 the world’s leading inspection, verification, testing and certification company.

Hidayat Ang, Director, PT Sumatera Timberindo Industry said that high quality products that are processed in a responsible and sustainable manner is 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, said 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. 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.”

Apart from the latest export financing sustainability-linked loan, DBS also provides bancassurance keyman insurance to STI.

[1] Export loans use the goods to be exported, or proof of the transaction, as collateral for the loan. The loan provides working capital for the borrower.

 

(End)

 

About DBS
DBS is a leading financial services group in Asia with a presence in 18 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world.

Recognised for its global leadership, DBS has been named “World’s Best Bank” by Euromoney, “Global Bank of the Year” by The Banker and “Best Bank in the World” by Global Finance. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney. In addition, DBS has been accorded the “Safest Bank in Asia” award by Global Finance for ten consecutive years from 2009 to 2018.

DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets. DBS is committed to building lasting relationships with customers, and positively impacting communities through supporting social enterprises, as it banks the Asian way. It has also established a SGD 50 million foundation to strengthen its corporate social responsibility efforts in Singapore and across Asia.

With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. The bank acknowledges the passion, commitment and can-do spirit in all of our 27,000 staff, representing over 40 nationalities. For more information, please visit www.dbs.com.

Back to results

Search News

Select Country
From
To

DBS Annual Report

DBS Annual Report 2018

Click here to read DBS' 2018 Annual Report - Best Bank in the World.

View our previous Annual Reports