DBS : partners PT. Indo-Rama Synthetics Tbk to advance its sustainability agendaSingapore.12 Apr 2024.5

DBS Bank, Singapore's largest financial institution, has announced a partnership with PT Indo-Rama Synthetics Tbk, an Indonesian textile and chemical manufacturing company, to support the latter's sustainability efforts. The collaboration includes a credit facility extended by DBS to help PT Indo-Rama Synthetics finance the development of infrastructure that will enable the transition of the company's factory complex from captive coal-fired power plants to the national grid.

The move is part of DBS's broader commitment to promoting sustainable business practices and reducing carbon emissions. By providing financing for the infrastructure project, DBS aims to help PT Indo-Rama Synthetics reduce its reliance on coal-fired power and shift towards renewable energy sources, thereby contributing to a more sustainable and eco-friendly industrial sector in Indonesia.

The infrastructure project involves connecting the factory complex to the national grid, which will require significant investment in electrical infrastructure and upgrades. The transition from captive coal-fired power plants to the national grid is expected to result in substantial reductions in greenhouse gas emissions, making it a crucial step towards PT Indo-Rama Synthetics' sustainability goals.

DBS's partnership with PT Indo-Rama Synthetics is not the first initiative the bank has taken towards promoting sustainable business practices in Indonesia. In recent years, DBS has been actively involved in financing renewable energy projects and supporting companies in their transition towards more sustainable business models. The bank's commitment to sustainability is reflected in its various initiatives, including its Green Loans and Sustainable Finance Framework, which provide financing for projects that contribute to the reduction of greenhouse gas emissions and promote sustainable business practices.

PT Indo-Rama Synthetics is one of Indonesia's leading textile and chemical manufacturing companies, with a significant presence in the country's industrial sector. The company's commitment to sustainability is evident in its efforts to reduce its carbon footprint and adopt more eco-friendly manufacturing processes. The partnership with DBS is expected to help the company accelerate its sustainability initiatives and set an example for other companies in the sector to follow.

In conclusion, the partnership between DBS and PT Indo-Rama Synthetics marks an important step towards promoting sustainable business practices and reducing carbon emissions in the industrial sector in Indonesia. The credit facility extended by DBS will help finance the development of infrastructure that will enable PT Indo-Rama Synthetics to transition from coal-fired power plants to the national grid, making a significant contribution towards the company's sustainability goals and setting an example for other companies in the sector to follow.