South Korean steel giant Posco said Wednesday it has teamed up with Industrial Bank of Korea to seek shared growth with its Indonesian suppliers and boost the Southeast Asian country’s steel industry overall.

Their respective Indonesian units – PT Krakatau Posco and PT Bank IBK Indonesia – signed a business partnership earlier this month in Jakarta, with government and company officials in attendance.

PT Krakatau Posco is a joint venture between Posco and Indonesia’s state-run steelmaker PT Krakatau Steel. Its steel mill, completed in the industrial city of Cilegon in 2014, produces about 3 million tons of steel sheets per year. Its operating profit exceeded $700 million last year.

Under the latest agreement, PT Krakatau Posco will deposit funds to PT Bank IBK Indonesia and the bank will offer loans of up to $10 million and other financial benefits to partner firms.

This marks the first overseas case for both Posco and IBK to seek shared growth with local suppliers.

Beneficiaries of the loan program will be recommended by the steelmaker. Companies borrowing money in the Indonesian rupiah will enjoy up to a 4 percent cut in interest rate, while those borrowing in the US dollar will receive a 3 percent interest reduction.

“We have decided to carry out the program in Indonesia, taking a cue from the ESG fund at home,” said Kim Kwang-moo, president of PT Krakatau Posco, referring to its environmental, social and governance endeavors. “We will continue efforts for shared growth not just with our suppliers, but also with all the stakeholder groups within Indonesia’s steel industry.”

Jeon Jang-gon, president of PT Kostec Prima Baja, one of the Posco joint venture’s suppliers, expressed gratitude for the program, saying, “This is great news for midsized firms that have to take loans at higher interest rates.”