• $53M sustainability-linked loan: Co-invested by IFC and PT Bank OCBC NISP to enhance green building certifications and reduce carbon emissions.
• 42% emissions reduction target: Existing properties must achieve this by 2030, with new buildings obtaining EDGE Advanced certification.
• Expanding climate finance: The investment addresses financial barriers to green building adoption in Indonesia.

IFC’s First Sustainability-Linked Loan in Indonesia

The International Finance Corporation (IFC) has announced its first sustainability-linked loan in Indonesia, aimed at advancing green building certification and decarbonizing retail and logistics properties. The $53 million loan, co-financed with PT Bank OCBC NISP, will support PT Nirvana Wastu Pratama (NWP) in reducing energy use and greenhouse gas (GHG) emissions.

A Commitment to Green Development

“Working with IFC is a significant milestone which exemplifies our commitment to sustainability,” said Kevin Kow, CEO & President Director of NWP. “This joint effort will significantly cut greenhouse gas emissions in our projects and benefit the economic development of local communities.”

Clear Sustainability Targets

The loan is tied to two performance benchmarks:

• Existing properties must reduce emissions by 42% by 2030, using 2019 as the baseline.
• New and retrofitted buildings must achieve EDGE Advanced certification.

Since 2017, NWP has been a leader in Indonesia’s green building sector, securing EDGE certification for 11 assets, with six more in the pipeline by 2027.

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The Need for Green Finance

The construction sector accounted for 23% of Indonesia’s energy use in 2021, a figure expected to rise to 40% by 2030. IFC’s investment aligns with its strategy to support urban decarbonization and climate resilience.

“Financial barriers are widely seen as the biggest obstacle to adopting green building practices in Indonesia,” said Euan Marshall, IFC’s Country Manager for Indonesia and Timor-Leste. “There is a pressing need for more specialized financing tools, including sustainability-linked financing.“

Driving the Low-Carbon Transition

By expanding access to sustainability-linked financing, IFC is accelerating Indonesia’s shift to a low-carbon economy, helping developers overcome financial hurdles and ensuring the growth of environmentally responsible infrastructure.

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