UOB Indonesia launches U-Solar 2.0 to support the value chain of Indonesia’s solar industry

Jakarta, 25 July 2023 – UOB Indonesia launched U-Solar 2.0, an expansion to its successful U-Solar programme that aims to simplify access to sustainable financing for local solar engineering, procurement, construction, and commissioning (EPCC) contractors as well as project developers. The launch is part of the Bank’s efforts to help accelerate the country’s transition to a low carbon economy.

U-Solar 2.0 offers comprehensive end-to-end support throughout the entire value chain, empowering the solar energy sector to thrive and progress at an accelerated pace. By connecting key players in the industry, this enhanced programme ensures a smooth flow of financing, enabling them to meet the surging demand for solar energy in the region.

According to a recent UOB Business Outlook Study, sustainability was ranked the top priority for 2023 by 97 percent of businesses in Indonesia and 47 per cent of business have started implementing sustainability practices1 in their businesses. Despite concerns about increase in cost of their products and services, nearly 7 in 10 businesses said that sustainability helps attract investors while 3 in 5 businesses said that sustainability helps to improve their business reputation and branding.

Mr Harapman Kasan, Wholesale Banking Director, UOB Indonesia, said “At UOB Indonesia, we take our responsibility to forging a sustainable future seriously. Through U-Solar 2.0, we help to connect the solar ecosystem and accelerate the transition to a low carbon economy. This programme aims to empower Indonesia’s solar energy industry with sustainable practices, in alignment with the government agenda to drive 23 per cent of electric generation from renewable energy by 2025 .”

Connecting the whole solar (eco)system
Under the U-Solar 2.0 programme, contractors and developers can benefit from better credit terms when purchasing from approved equipment suppliers. This suite of solutions also includes green trade financing, which effectively addresses cash flow issues and working capital gaps for developers and contractors. By enabling them to finance equipment purchases and work on multiple solar projects concurrently, U-Solar 2.0 supports the increasing adoption of solar energy throughout the region.

U-Solar 2.0 operates under UOB's Smart City Sustainable Finance Framework and expands its offerings to players across the entire solar value chain. Inclusion of green trade financing under UOB's Green Trade and Working Capital Sustainable Finance Framework further supports the wider adoption of green energy, strengthening partnerships with industry players and enabling clients to achieve their decarbonisation goals.

Building on U-Solar’s success
Launched in October 2019, U-Solar has emerged as Asia's first integrated solar energy financing platform, driving the development and adoption of renewable energy across Southeast Asia. Through partnerships with 21 solar developers and contractors across Singapore, Malaysia, Indonesia, and Thailand, UOB provides exclusive packages for both businesses and homeowners. This includes Indonesia’s ecosystem partners namely PT Optima Daya Energi (Innisolar), PT Selaras Daya Utama (SEDAYU) Energy and TML Energy.

The U-Solar programme has positively impacted over 200 companies and 1,700 homeowners by facilitating their transition to solar energy. To date, it has contributed to a reduction of more than 350,000 tonnes of greenhouse gas emissions. This achievement is equivalent to taking over 70,000 passenger cars off the road for a year or growing more than 5 million tree seedlings over a span of 10 years.

For more information on U-Solar, please visit https://www.uobgroup.com/usolar-id/