Strengthening ESG, LPEI Teams Up with IIF – Pasardana
Strengthening ESG, LPEI Teams Up with IIF
Lembaga Pembiayaan Ekspor Indonesia (LPEI) or Indonesia Eximbank has forged a strategic collaboration with PT Indonesia Infrastructure Finance (IIF) to strengthen the application of international standards and integrate Environmental, Social, and Governance (ESG) principles. The cooperation is marked by the signing of a Memorandum of Understanding (MoU) and a Cooperation Agreement (PKS) related to the provision of consulting services.
The collaboration includes policy formulation, operational guidelines, and a risk management framework aligned with global sustainability principles. Additionally, the two institutions will organise an ESG Workshop focusing on the application of the Organisation for Economic Co-operation and Development (OECD) standards and international best practices in Export Credit and Credit Guarantees schemes.
Executive Director of Indonesia Eximbank, Sukatmo Padmosukarto, said the partnership is not merely about fulfilling sustainability aspects, but a concrete step in responding to global dynamics and demands. “Through this synergy, Indonesia Eximbank reiterates its role not only as an export financing institution but also as a catalyst for improving national competitiveness through the adoption of responsible and sustainable business practices,” Sukatmo said on Tuesday (3 February 2026).
As a Special Mission Vehicle (SMV) of the Ministry of Finance, Indonesia Eximbank is committed to aligning its business practices with OECD standards. The move is seen as strategic to strengthen the institution’s readiness to support the government’s agenda towards full membership of Indonesia in the OECD.
Integrating ESG into business processes is expected to improve the quality of export financing portfolios while also empowering national businesses to be more competitive and resilient in the global market. Indonesia Eximbank selected IIF as a strategic partner given its track record as a pioneer in ESG implementation in Indonesia. IIF was established by the Indonesian government together with multilateral and international financial institutions such as the International Finance Corporation (IFC), the Asian Development Bank (ADB), DEG, and Sumitomo Mitsui Banking Corporation (SMBC), and has experience in applying social and environmental protection standards of international standing.
IIF will provide strategic mentoring to strengthen Indonesia Eximbank’s policies, systems, and internal capacity in implementing ESG principles comprehensively. This support includes bolstering ESG policy, environmental and social risk management systems, and carbon emissions management, all of which will support the fulfilment of international standards and criteria.
“This collaboration is a strategic step by IIF to support corporate transformation in Indonesia by strengthening the ESG framework in a structured manner. We believe that ESG implementation will create long-term added value for both institutions,” said IIF President Director Rizki Pribadi Hasan.
In addition to financing infrastructure projects, IIF also actively provides consulting services to the public and private sectors, such as feasibility study preparation, transaction advisory, financial advisory, strategy and business advisory, economic and/or financial assessment, social and environmental advisory, and policy advisory.