Making History, Vale Secures Rp13.53 Trillion Green Loan

PT Vale Indonesia Tbk (INCO) has secured a Sustainability Linked Loan (SLL) worth US$ 750 million, equivalent to approximately IDR 13.53 trillion (assuming an exchange rate of IDR 18,042 per US$). This achievement marks a new milestone as the first mining project in Southeast Asia (ASEAN) to successfully obtain an environmentally friendly financing scheme.

The President Director of PT Vale Indonesia, Bernardus Irmanto, explained that the loan serves as evidence of the banking sector’s confidence in the company’s credibility regarding Environmental, Social, and Governance (ESG) standards. The company remains committed to conducting responsible mining operations through its ESG targets.

“PT Vale signed a sustainability-linked loan of US$ 750 million a few months ago. This may be the first for a mining project in Southeast Asia, so we are very proud of this achievement,” he stated during the Indonesia Critical Minerals Conference & Expo 2026 in Jakarta, as reported on Thursday (4/6/2026).

The loan scheme provides incentives in the form of competitive interest rates for the company. Unlike conventional loans, an SLL offers an interest burden that decreases if the company manages to meet several ESG targets agreed upon with the lenders.

“There are several ESG targets, and if we can meet those targets, the interest rate will drop. Therefore, it is a very interesting concept, and I am encouraging my team to achieve them,” he added.

The acquisition of this substantial funding is valued not only from a financial perspective but also as an effort by the company to change the negative stigma surrounding the mining industry. The company aims to demonstrate to the global market that nickel production can be carried out in harmony with environmental preservation and decarbonisation efforts.

“From an economic standpoint, we certainly receive very competitive interest rates, but this is also to show the world that mining projects can indeed be sustainable. This is the responsible nickel that we want to bring to the world,” he said.

Consequently, the company emphasised the importance of proving through facts and field performance to maintain the bargaining position of Indonesian mineral products in the international market by adhering to sustainability standards.

“We need to change the debate. I believe the best answer to that is by showing performance and facts. We must manage the balance between profit, growth, and progress,” he concluded.