Indonesia is targeting an economic growth rate of 8% by 2028-2029. According to the Institute for Essential Services Reform (IESR), an accelerated energy transition could play a pivotal role in achieving this target. However, the Ministry of Finance estimates that the energy transition will cost USD280 billion by 2030, with only 30% of this amount covered by the state budget. This situation emphasizes the need for financial institutions to support sustainable business transformation, as outlined in the Financial Services Authority's (OJK) Sustainable Finance Roadmap.
PT Bank DBS Indonesia, a key entity in this effort, is committed to promoting Environmental, Social, and Governance (ESG)-based financing. Kunardy Lie, Head of Institutional Banking Group at PT Bank DBS Indonesia, stated, “As a trusted partner for sustainable financing, we believe that Environmental, Social, and Governance (ESG)-based financing is crucial to drive a sustainable economy, support green projects, and Indonesia's energy transition to achieve the Net Zero Emissions target by 2060."
From 2024, the bank witnessed a 14.8 percent increase in ESG-related financing. Significant transactions include a USD20 million Sustainability-Linked Trade Facility for PT Indo-Rama Synthetics Tbk, and a club loan facility worth Rp1.7 trillion arranged with Bank UOB Indonesia for PT Princeton Digital Group's AI-based data center campus development.
The bank has also provided IDR350 billion to PT CJ Feed & Care Indonesia to reduce greenhouse gas emissions, alongside a USD50 million trade financing facility for Permata Group to boost its biodiesel operations.
These initiatives saw Bank DBS Indonesia being recognized as Indonesia's Best Bank for ESG and the World's Best Bank for Sustainable Finance in 2025 by Euromoney and Global Finance respectively.
DBS Bank Ltd has been working closely with PT TBS Energi Utama Tbk in their strategic acquisitions for expansion in the waste management and environmental solutions sector in Indonesia and Singapore. TBS CEO Dicky Yordan expressed appreciation for the strategic partnership with DBS Bank, acknowledging its role as a financial adviser in the acquisition of Sembcorp Environment Pte. Ltd.
In collaboration with the Asian Development Bank, Bank DBS Indonesia also facilitated the adoption of electric motorcycles in Indonesia with substantial financing through PT Energi Kreasi Bersama.
Kunardy Lie emphasized Bank DBS’s commitment to sustainable financing, highlighting their role in supporting businesses adopting environmentally responsible practices. “As one of Asia's leading banks, Bank DBS plays a role in helping companies transition to more sustainable operations while realizing a low-carbon economy.”
This commitment aligns with DBS’s mission to support sustainable development beyond banking. The bank has been recognized globally for its banking leadership, underpinning its role in promoting sustainability and innovation in digital banking across Asia.