Citi Indonesia And Coca-Cola Agree On Sustainable Supply Chain Financing

Illustration of Citi Indonesia (Photo: Doc. Antara)

JAKARTA - Citibank, NA Indonesia (Citi Indonesia), and Coca-Cola European Partners Indonesia (CCEP Indonesia) signed a Sustainable Supply Chain Finance (SSCF) agreement, today (16/10).

Citi Country Officer, Citi Indonesia Batara Sianturi said the SSCF program can help and support these sustainability goals. As well as support suppliers by providing incentives on the interest rates they impose, as they strive to meet clients' main sustainability goals.

Batara added that this program will improve existing supply chain financing programs with benefits related to Sustainability and will be available to suppliers who are considered sustainable as identified by clients.

"With this launch, Citi Indonesia has strengthened our long-term relationship with the Indonesian Coca-Cola Europacific Partners to support their sustainability agenda," he explained in his official statement, Monday, October 16.

Meanwhile, Batara said the Sustainable Supply Chain Finance (SSCF) program will provide benefits to its companies and suppliers where this program prioritizes the position of their working capital. In addition, through the SSCF program, Citi provides financing to suppliers from bank clients, from the date of receiving certain goods/services to the maturity date of payment to suppliers.

On the other hand, this financing fee is borne by suppliers at lower rates than the usual cost of funds. So that suppliers can benefit in the form of accelerating cash flow, accelerated payments, and decreasing financing expenses.

Similarly, the President Director of Coca-Cola Europacific Partners Indonesia & Papua New Guinea, Xavi Selga, acknowledged the SSCF program as a very important collaboration in order to increase joint sustainability efforts.

"Mating with Citi Indonesia in the SSCF program shows a strong dedication to sustainability at CCEP Indonesia. This partnership not only strengthens commitments to advancing sustainable practices throughout our supply chain, but also supports our suppliers with practical and accessible financial options," he said.

Xavi said that his party strongly believes that sustainable business is the right business. Together with Citi, it will have a positive impact and encourage change towards sustainable practices.

In addition, Indonesia's CCEP's commitment to sustainability includes, ranging from procuring raw materials to growing a sustainable work culture. CCEP Indonesia has a clear environmental sustainability goal, including reaching 100% packaging collection by 2030.

Xavi said he would ensure that 50 percent of the packaging came from the recycling PET (RPET), targeted zero emissions by 2040, and significantly reduced greenhouse gas emissions by 2030.

On this sustainability journey, CCEP Indonesia actively invites provider partners to participate and encourage the use of renewable energy and increase the overall performance of ESG.

Head of Treasury and Trade Solutions, Citi Indonesia Yoanna Darwin said Citi is committed to developing sustainable solutions with clients around the world. This commitment is deeply integrated into business and long-term priorities.

"Through an agreement with CCEP Indonesia, it will help achieve their sustainability ambition by providing access to CCEP suppliers to affordable working capital financing. Helping clients realize the sustainability agenda and supporting international trade transactions is Citi's top priority," he said.