JAKARTA – Citibank N.A. Indonesia (Citi Indonesia), alongside Coca-Cola Europacific Partners Indonesia (CCEP Indonesia), is preparing total facility of almost USD 30 million (equivalent) for sustainable supply chain finance (SSCF) program.

The signing of this collaboration agreement took place last Monday (16/10). Based on the explanation of Yoanna Darwin, Head of Treasury and Trade Solutions of Citi Indonesia, the tenor will be set to 90 days.

This facility will offer incentives to charged interest rate. The incentive will be adjusted according to sustainability score of each supplier. “There will be a third, independent party that will assess sustainability score of each supplier. Then, we will set the incentive,” Batara Sianturi, Citi Country Officer of Citi Indonesia, explained.

Lucia Karina, Public Affairs, Communication, and Sustainability Director of CCEP Indonesia, will treat supply chain financing as an entry gate towards a more extensive sustainable financing, which is expected to cover the whole chain supply in the future.

“There is a lack of sustainable financing program; we must initiate a pilot project. The easiest ones to reach is suppliers,” added Karina.

On the SSFC agreement signing event, several suppliers of Coca-Cola, starting from PT Samator Gas Indonesia Tbk (AGII) to PT Dynaplast, came to give their testimony of their participation in this SSFC program with CCEP Indonesia.

“This is an initiative that we design to provide added value to sustainable financing,” Sianturi mentioned. “Out of 1,000 suppliers, 85 suppliers have signed up. We wish other companies, under the same chain supply, will also participate in this SSFC program,” he concluded. (ZH)