Maspliansyah, Acting Director of PT Bank Kalteng, delivers his remarks during the memorandum of understanding signing ceremony. Photo: USAID SEGAR

The Central Kalimantan Provincial Government continues to demonstrate its commitment to sustainable development, including in the plantation sector. Oil palm, as a primary commodity, is a priority for both the provincial government and the private sector in guiding sustainable plantation practices, supported by green financing schemes. In this effort, USAID Sustainable Environmental Governance Across Regions (SEGAR) is collaborating with PT Bank Kalteng to develop green financing in the sustainable oil palm sector. Concurrently, this green financing cooperation will also support good plantation practices.

On Tuesday (09/25), USAID SEGAR and PT Bank Kalteng signed a Memorandum of Understanding (MOU) to build a sustainable financing portfolio in Central Kalimantan. This collaboration targets the mobilization of approximately 7 million US dollars, which includes support to facilitate access to potential recipients of sustainable financing for USAID SEGAR's private sector oil palm partners interested in greening their supply chains.

The signing ceremony was attended by Maslipansyah, Acting Director of PT Bank Kalteng; Primandanu Febriyan Aziz, Head of the Central Kalimantan Financial Services Authority (OJK); Rizky Ramadhana Badjuri, Head of the Central Kalimantan Plantation Office; and representatives from other relevant agencies.

In his remarks, Maslipansyah, Acting Director of PT Bank Kalteng, stated that this MoU is a breakthrough in Bank Kalteng's performance to contribute to sustainable plantations. He also expressed appreciation to USAID SEGAR for this initiative, which provides an opportunity for regional banks to participate in the vision of sustainable development.

"To date, this regional government-owned bank has nine oil palm plantation business partners, both companies and cooperatives in Central Kalimantan," he explained. "The cooperation established through this MoU is a tangible form of synergy between various parties to achieve our shared vision and mission."

Following up on this MoU, USAID SEGAR and PT Bank Kalteng will plan access to technical support in fulfilling the implementation of sustainable finance principles and provide resources to support planned and agreed activities.