Conglomerate Sri Prakash Lohia Company Gets 20 Million Dollars Green Financing From HSBC Indonesia

Illustration (Photo: Doc. Antara)

JAKARTA - PT Indo-Rama Synthetics Tbk has just received a commitment to finance green 20 million US dollars from PT Bank HSBC Indonesia.

It is said that green futures loans are used to support the company's efforts to reduce energy consumption through installations of new machines with more efficient technology.

President Director of Indorama Group V.S. Baldwa said that the injection of fresh funds would be optimized for a braid yarn factory which is believed to be able to meet the increase in consumer demand.

"This project is expected to increase energy efficiency by about 20 percent obtained from the use of more energy efficient machines and technologies," he said in a press release today, Monday, September 18.

Baldwa explained that the expansion taken was in line with Indorama's broad plan to increase ESG which includes a decarbonization roadmap, initiative renewable resources, such as the installation of suraya panels, as well as activating the use of recycled materials.

HSBC Indonesia's longstanding relationship with Indorama has become a strong foothold in sharpening this collaboration. The relationship between HSBC Indonesia and Indorama is based on the same beliefs and values, so that this green future loan further strengthens joint commitment to sustainable finance and the implementation of responsible business practices," he said.

On the same occasion, HSBC Indonesia President Director Francois de Maricourt said that his party had been involved in carrying out sustainability finance through strategic partnerships between the government and the private sector.

"We play an active role in strategic initiatives such as Glasgow Financial Alliance for Net Zero (GFANZ) through the Just Energy Transition Partnership (JETP) mechanism. This collaboration aims to accelerate the transition to a low-carbon and sustainable economy in Indonesia," said Francois.

Similarly, HSBC Indonesia Managing Director Riko Tasmaya said the trip to decarbonization requires cross-stakeholder collaboration.

We realize the biggest impact we can have is to continue to help our customers reduce the emissions produced in their operations.

"We are pleased to be able to support Indorama's great commitment to increasing the application of ESG principles in their operations," he stressed.

PT Indo-Rama Synthetics Tbk. is a public company in Indonesia, an integrated yarn producer and polyester who is a subsidiary of Indorama Corporation Pte. Ltd., Singapore.

This entity is affiliated with a business owned by national entrepreneur Sri Prakash Lohia, who is the 4th richest conglomerate in Indonesia according to Forbes in 2022.