JAKARTA. PT Dharma Satya Nusantara Tbk (DSNG) has been granted a loan from Asian Development Bank (ADB) worth USD 15 million, equivalent to approximately IDR 225 billion using a currency exchange rate of IDR 15,000 per USD.

Jenti Widjaja, Director of DSNG, claimed that said loan will be used for capital expenditure, including the implementation of efficient energy development, water utilisation, and the planting of traditional Indonesian trees, such as Sengon and Jabon. They are deemed the sustainable alternative for natural wood, prevent deforestation, and promote biodiversity.

Widjaja further claimed that this loan will become DSNG’s first sustainability-linked financing facility, with a price adjustment after securing the previously set annual sustainability target. Furthermore, said loan has received a second opinion from independent parties according to the industry principles.

“The sustainability-linked financing facility is in line with our vision to become a business that is responsible for society, planet, and general welfare,” Widjaja stated in the press release as quoted by Bisnis last Saturday (28/1).

On top of distributing a loan, ADB also provides technical aid in the form of grant funds of USD 500,000. This technical aid will enhance the capacity for climate-proof agricultural practices for complex agroforestry system, as well as improving financial literacy for approximately 4,000 farmers, 1,200 of which are female farmers. (AM/ZH)