DBS to Phase Out Thermal Coal Financing for Indonesian Producers
DBS will stop funding thermal coal producers as part of its commitment to climate change. The Singapore-based bank stated that it has no intention of renewing its funding if coal still dominates its business.
One of them is PT Adaro Indonesia, the subsidiary of PT Adaro Energy Indonesia Tbk (ADRO). "Our exposure to Adaro Energy's subsidiaries in the coal sector will decrease significantly by the end of 2022. We have no intention of renewing funding if the business is still dominated by thermal coal," a DBS spokesperson said on Wednesday, as quoted by The Strait Times.
PT Adaro Energy Indonesia Tbk respects DBS's decision. "Well noted on their decision. At the moment, Adaro does not have immediate financing requirements. When the needs arise, we will explore and evaluate available funding options, whether from debt or equity markets," Febriati Nadira, Head of Corporate Communications at Adaro Energy, told D-Insights.