Indonesia's efforts to decarbonize its building sector have received a significant boost with a $53 million sustainability-linked loan from the International Finance Corporation (IFC), part of the World Bank Group. This marks IFC’s first sustainability-linked loan in Indonesia, provided to PT Nirvana Wastu Pratama (NWP), a leading developer of retail and logistics properties.

The loan aims to help NWP enhance energy efficiency, reduce greenhouse gas (GHG) emissions, and achieve green building certifications through IFC's EDGE (Excellence in Design for Greater Efficiencies) program. Indonesia’s building sector, which accounted for 21% of the country’s energy consumption in 2021, is projected to surge to 40% by 2030, underscoring the urgent need for sustainable solutions.

Specific targets tied to the loan include reducing emissions from existing properties (older than three years) by 42% by 2030, compared to 2019 levels. New buildings or those undergoing major renovations are required to attain EDGE Advanced certification, ensuring high standards of energy efficiency. NWP has already secured EDGE certification for 11 properties, with six more in the pipeline by 2027, setting an industry benchmark for sustainable practices in Indonesia.

Kevin Kow, CEO & President Director of NWP, emphasized, “Working with IFC is a significant milestone that exemplifies our commitment to sustainability. This partnership will help us adopt greener building practices and set a new benchmark for the industry in Indonesia.”

Euan Marshall, IFC’s Country Manager for Indonesia and Timor-Leste, highlighted the strategic importance of this investment: “Financial barriers are the biggest obstacle to green building adoption in Indonesia. Sustainability-linked financing is essential to drive decarbonization and climate resilience.”

This initiative not only supports Indonesia’s climate goals but also promotes economic development through sustainable urban growth.