Investment Approach

The TLFF supports deforestation free supply chains through strict lending criteria. It aims to mobilize international capital at scale to incentivize sustainable agriculture and renewable energy in Indonesia. We hope to decrease the environmental damage that often accompanies business-as-usual investing and at the same time improve rural livelihoods.

ADM Capital manages the TLFF lending platform. BNP Paribas arranges long-term commercially priced, long-tenor debt for individual projects.

Risk Management

Robust processes are in place to manage risk appropriately.

Risk Management

Robust processes are in place by ADM Capital to manage risk appropriately.

Environmental, Social and Governance Standards

TLFF will identify key impact objectives for each project and design appropriate measures that include effective consultation with relevant communities. We will measure projects to some or all of our eight core objectives:

  • Retained canopy cover, reduced land conversion and reduced emissions through use of finance to support better efficiency in the smallholder agriculture sector as well as no deforestation commitments
  • Improved rural livelihoods from better smallholder farming practices as well as access to clean energy and skills-based training for projects, with particular attention paid to gender equality, no child labor and fair labor and wages
  • No drainage or burning of peatland as a result of TLFF supported activity
  • Sustainable supply chains for agricultural companies, including improved use of certifications by mills, cooperatives, use of technology and innovation (traceability, GPS land mapping, farming practices, monitoring, etc) prompting better farming practices
  • Scaling up of investment in renewable energy capacity, including solar, wind, environmentally sustainable small scale hydro, with a particular focus on access to electricity for marginalized, off-grid communities
  • Reduced emissions from prohibitions on slash and burn in landscapes
  • Biodiversity protection and mapping of threatened/endangered species
  • Pollution reduction in freshwater systems, reduced air emissions (haze, diesel), reduced soil contamination from better farming practices, reduced chemical use

Investment Strategy

The TLFF seeks to provide long-term debt to individual projects in the sustainable agriculture, forest conservation and renewable energy sectors. Depending on the project, loans may either be provided in IDR or USD.

Investment Committee

The TLFF Investment Committee consists of 3 members and 3 observers, each with substantive investment expertise. They provide strategic oversight and guidance on shortlisted investments.

Investment Team

The TLFF Investment Team sources and analyses transactions, executes and monitors investments, and determines strategic focus areas for future transactions. The team currently consists of the following experts, bringing experience in leadership, environment and social governance, energy and infrastructure investments and structured finance.

Project Pipeline

The TLFF Lending Platform has a solid pipeline of investment opportunities in the renewable energy and sustainable agriculture sectors that bring significant social and environmental impact in Indonesia.

Investing in sustainable smallholder farming leads to greater agricultural efficiency, reduces land conversion and improves sustainability in supply chains. We invest in:

  • Aquaculture
  • Land restoration
  • Smallholder plantations (including: bamboo, cocoa, coconut, coffee, palm, rubber, etc.)
  • Technology solutions

The renewable energy projects in our investment portfolio and pipeline offer solutions for rural electrification, increased green energy capacity, and carbon emissions and pollution reduction. We invest in the following renewable energy subsectors:

  • Biogas
  • Biomass
  • Hydro and mini hydro
  • Solar PV
  • Wind
  • Circular economy (e.g. plastics recycling)
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