Bank DBS Indonesia Enhances Strategic Collaboration to Help Accelerate Automotive Sector Growth in Indonesia | Bahasa
Indonesia.22 Feb 2024.0 min read
Indonesia, 22 Feb 2024 - Association of Indonesian Automotive Industries (GAIKINDO) data shows that in 2023, national car sales reached 998,059. Meanwhile, Statista projected that Indonesia’s passenger car market will reach US$16.8 billion in 2024. The revenue will exhibit an annual growth rate (CAGR 2024-2028) of 1.28%, resulting in a projected market volume of US$17.7 billion in 2028.
Similarly, the transition to more environmentally friendly electric vehicles (EV) is also showing promising prospects. The government has set a target of putting at least 2.2 million electric cars and 13 million electric motorcycles on the road by 2030, with plans to sell electric vehicles exclusively by 2050. To achieve the target, the government provides incentives and the regulatory framework for the installation of charging stations. Coincidentally, the DBS CIO Insights Q1 2024 report projected a surge in demand for EV battery manufacturing infrastructure and public electric vehicle charging stations (SPKLUs) on the back of the growing number of EV users. Additionally, a number of private businesses, including charging network operators, utility companies and automakers have also started to expand the infrastructure.
"Bank DBS Indonesia continues to reaffirm its commitment to supporting the automotive sector in Indonesia through multiple strategic collaborations. As specified by Bank DBS’ decarbonisation guidelines entitled ‘Our Path to Net Zero–Supporting Asia's Transition to a Low-Carbon Economy’, the automotive industry is one of the nine industrial sectors with great potential for low-carbon transition. This has fueled our passion for strategic collaboration with and financing for automotive companies to accelerate the development of the electric vehicle ecosystem for sustainable energy transition in Indonesia," said Head of Institutional Banking Group at PT Bank DBS Indonesia Kunardy Lie.
Recently, Bank DBS and five other banks signed a syndicated loan agreement worth USD300 million or the equivalent to Rp4.7 trillion with PT Adira Dinamika Multi Finance Tbk (Adira Finance). Bank DBS is the mandated lead arranger/bookrunner (MLAB) for the three-year loan.
Director of Sales, Service and Distribution at Adira Finance Niko Kurniawan explained, "The loan is aimed at boosting the company's asset growth, expanding the scope of digitalisation in the company, and developing the company's digital ecosystem. With the support of Bank DBS and all syndication partners, Adira Finance is committed to continuing to lead the financing industry by optimising services and by continuing to be a reliable partner for the general public."
Bank DBS Indonesia has also disbursed loans to several automotive industry players. In 2023, the bank provided USD16 million or the equivalent to IDR244 billion of loan to PT Indomobil Sukses Internasional Tbk (Indomobil) to purchase electric vehicles and BEV components to support the company’s transition to greener practices to achieve its net-zero emissions target by 2050.
All these endeavours are made to support DBS Group's sustainability vision to achieve net zero emissions by 2050. In 2022, DBS Group issued guidance on nine key industry sectors of focus, namely aviation, property, chemicals, food and agriculture, oil and gas, energy, steel, shipping, and automotive. These nine sectors were selected as they represent 31% of the overall loan portfolio and account for more than 90% of carbon emissions. Through these nine sectors, DBS Group seeks to play the role of adviser to corporate customers as they transition to renewable energy.
DBS Group has three pillars of sustainability, namely Responsible Banking, Responsible Business Practices, and Impact Beyond Banking. The loan is a manifestation of the first pillar, Responsible Banking, which is also DBS Group’s foundation in realising its vision as 'Best Bank for a Better World'.
For more information about:
About DBS
DBS is a leading financial services group in Asia with a presence in 19 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 Global Finance, “World’s Best Bank” by Euromoney and “Global Bank of the Year” by The Banker. 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 and the world’s “Most Innovative in Digital Banking” by The Banker. In addition, DBS has been accorded the “Safest Bank in Asia” award by Global Finance for 15 consecutive years from 2009 to 2023.
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, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by supporting businesses for impact: enterprises with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping underserved communities with future-ready skills and helping them to build food resilience.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.
Similarly, the transition to more environmentally friendly electric vehicles (EV) is also showing promising prospects. The government has set a target of putting at least 2.2 million electric cars and 13 million electric motorcycles on the road by 2030, with plans to sell electric vehicles exclusively by 2050. To achieve the target, the government provides incentives and the regulatory framework for the installation of charging stations. Coincidentally, the DBS CIO Insights Q1 2024 report projected a surge in demand for EV battery manufacturing infrastructure and public electric vehicle charging stations (SPKLUs) on the back of the growing number of EV users. Additionally, a number of private businesses, including charging network operators, utility companies and automakers have also started to expand the infrastructure.
"Bank DBS Indonesia continues to reaffirm its commitment to supporting the automotive sector in Indonesia through multiple strategic collaborations. As specified by Bank DBS’ decarbonisation guidelines entitled ‘Our Path to Net Zero–Supporting Asia's Transition to a Low-Carbon Economy’, the automotive industry is one of the nine industrial sectors with great potential for low-carbon transition. This has fueled our passion for strategic collaboration with and financing for automotive companies to accelerate the development of the electric vehicle ecosystem for sustainable energy transition in Indonesia," said Head of Institutional Banking Group at PT Bank DBS Indonesia Kunardy Lie.
Recently, Bank DBS and five other banks signed a syndicated loan agreement worth USD300 million or the equivalent to Rp4.7 trillion with PT Adira Dinamika Multi Finance Tbk (Adira Finance). Bank DBS is the mandated lead arranger/bookrunner (MLAB) for the three-year loan.
Director of Sales, Service and Distribution at Adira Finance Niko Kurniawan explained, "The loan is aimed at boosting the company's asset growth, expanding the scope of digitalisation in the company, and developing the company's digital ecosystem. With the support of Bank DBS and all syndication partners, Adira Finance is committed to continuing to lead the financing industry by optimising services and by continuing to be a reliable partner for the general public."
Bank DBS Indonesia has also disbursed loans to several automotive industry players. In 2023, the bank provided USD16 million or the equivalent to IDR244 billion of loan to PT Indomobil Sukses Internasional Tbk (Indomobil) to purchase electric vehicles and BEV components to support the company’s transition to greener practices to achieve its net-zero emissions target by 2050.
All these endeavours are made to support DBS Group's sustainability vision to achieve net zero emissions by 2050. In 2022, DBS Group issued guidance on nine key industry sectors of focus, namely aviation, property, chemicals, food and agriculture, oil and gas, energy, steel, shipping, and automotive. These nine sectors were selected as they represent 31% of the overall loan portfolio and account for more than 90% of carbon emissions. Through these nine sectors, DBS Group seeks to play the role of adviser to corporate customers as they transition to renewable energy.
DBS Group has three pillars of sustainability, namely Responsible Banking, Responsible Business Practices, and Impact Beyond Banking. The loan is a manifestation of the first pillar, Responsible Banking, which is also DBS Group’s foundation in realising its vision as 'Best Bank for a Better World'.
For more information about:
About DBS
DBS is a leading financial services group in Asia with a presence in 19 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 Global Finance, “World’s Best Bank” by Euromoney and “Global Bank of the Year” by The Banker. 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 and the world’s “Most Innovative in Digital Banking” by The Banker. In addition, DBS has been accorded the “Safest Bank in Asia” award by Global Finance for 15 consecutive years from 2009 to 2023.
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, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by supporting businesses for impact: enterprises with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping underserved communities with future-ready skills and helping them to build food resilience.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.