The International Finance Corporation (IFC) has announced its first sustainability-linked loan in Indonesia, aimed at expanding green building certification for PT Nirvana Wastu Pratama (NWP), a retail and logistics property firm.
IFC, part of the World Bank Group, has joined PT Bank OCBC NISP in providing a $53 million loan with an 11-year tenure to support NWP’s efforts to decarbonise its property portfolio. The funding will be used to improve energy efficiency, reduce greenhouse gas emissions, and certify properties under IFC’s EDGE (Excellence in Design for Greater Efficiencies) programme.
The loan is linked to two specific sustainability performance targets. Properties in operation for more than three years must reduce absolute emissions by 42% by 2030, compared to a 2019 baseline. New developments or major retrofits must achieve EDGE Advanced certification, which requires at least 40% energy savings compared to conventional buildings.
Since 2017, NWP has secured EDGE certification for 11 properties, with six more set to be certified by 2027.
Indonesia’s building and construction sector is a major contributor to greenhouse gas emissions, accounting for 23% of national energy use in 2021, a figure projected to rise to 40% by 2030. Access to financing remains a key barrier to adopting sustainable building practices.
“This investment aligns with IFC’s strategy for Indonesia, which prioritises decarbonisation of the urban environment and climate resilience,” said Euan Marshall, IFC’s Country Manager for Indonesia and Timor-Leste. “Specialised financing tools, such as sustainability-linked loans, are essential to overcoming financial barriers and accelerating the adoption of green building practices.”
The initiative builds on IFC’s broader climate finance efforts in Indonesia, supporting the transition to a low-carbon economy through targeted investment in sustainable infrastructure.
