Indonesia, Jakarta, September 21, 2010—
PT Bank Internasional Indonesia (BII) and IFC, a member of the World Bank
Group, have signed a cooperation agreement to enhance the bank’s products
and services towards female entrepreneurs, allowing women to obtain financing
for their businesses more easily.
As part of the Cooperation Agreement,
IFC Indonesia will advise BII as it sets out to become the bank of choice
for women-owned businesses in Indonesia. Through this initiative, IFC will
assist BII to improve its reach to both the small medium enterprises and
“We welcome the partnership with
IFC and their support for our business expansion in SMEC segment. With
its reputation and extensive experience in SME business, IFC will provide
assistance for us in developing SME for women entrepreneurs in Indonesia,”
said Ridha Wirakusumah, President Director of BII. “The SME and Commercial
segment, we believe, is the backbone of the Indonesian economy and we hope
that through this partnership will strengthen our contribution to this
sector. The SME/Commercial segment has contributed 37% of our total loans
as of June 2010, and will remain one of our key focus businesses going
forward,” he added.
“Women represent a significant
market opportunity for commercial banks, as they are currently under-served
with financial products, particularly in emerging markets,” said Dorothy
Berry, IFC Vice President for Human Resources and Communications. “IFC
is pleased to partner with BII to increase access to finance for women
to grow their businesses”.
Indonesian women entrepreneurs are facing
many challenges in terms of their business size and location. More than
90 percent of women-owned or managed small medium enterprises used their
own savings to establish their business. Most of them are located outside
Jakarta and 82 percent of women-owned or managed small medium enterprises
have monthly revenue of less than $ 5,000.
BII is an existing IFC client, and is
the fifth largest private commercial bank in Indonesia. The bank currently
has 286 branches and 876 BII’s automated teller machines and 15 cash deposit
machines across Indonesia.
IFC has been at the forefront of providing
financial products and advisory services to increase access to finance
for women entrepreneurs, reduce gender-based barriers in the business environment.
IFC also works to increase access to finance for small medium enterprises
in developing countries by providing funding for equity, loans and mezzanine
finance to financial institutions focusing on small medium enterprises
financing and by building capacity of financial institutions and raising
awareness on best small medium enterprises banking practices.
IFC, a member of the World Bank Group,
is the largest global development institution focused on the private sector
in developing countries. We create opportunity for people to escape poverty
and improve their lives. We do so by providing financing to help businesses
employ more people and supply essential services, by mobilizing capital
from others, and by delivering advisory services to ensure sustainable
development. In a time of global economic uncertainty, our new investments
climbed to a record $18 billion in fiscal 2010. For more information, visit