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 Rp13.53 trillion. This marks a new milestone as the first mining project in Southeast Asia (ASEAN) to obtain an environmentally friendly financing scheme. PT Vale Indonesia President Director Bernardus Irmanto explained that the loan is evidence of the banking sector’s confidence in the company’s credibility regarding environmental, social, and governance (ESG) management. The company continues its commitment to conducting responsible mining operations through its ESG targets. “PT Vale recently signed a sustainability-linked loan of US$750 million a few months ago. This is likely the first for a mining project in Southeast Asia, so we are very proud of it,” he stated at the Indonesia Critical Minerals Conference & Expo 2026 in Jakarta. The loan scheme provides an incentive in the form of a competitive interest rate for the company. Unlike conventional loans, the SLL provides a debt burden where the interest rate will decrease if the company is able to meet a number of ESG targets agreed upon with the lender. “There are several ESG targets, and if we can meet those ESG targets, the interest rate will go down. So it is a very interesting concept and I encourage my team to achieve it,” he added. Securing these jumbo funds is assessed not only from a financial perspective, but also as an effort by the company to change the negative stigma against the mining industry. The company is trying to show the global market that nickel production can be carried out in harmony with environmental conservation and decarbonisation efforts. “From an economic standpoint, certainly we get a very competitive interest rate, but it is also just to show the world that mining projects can actually be sustainable. This is the responsible nickel that we want to bring to the world,” he said. He stressed the importance of proof through facts and field performance to maintain the bargaining position of Indonesian mineral products in the international market by observing sustainability standards. “We need to change the debate. I think the best answer to that is to show performance and facts. We must manage the balance between profit, growth, and progress,” he concluded.