Jakarta, May 10, 2005 —The International
Finance Corporation, the private sector arm of the World Bank Group, today
signed an agreement to provide up to $15 million (145 billion rupiah equivalent)
through a local currency loan facility to PT. Austindo Nusantara Jaya Finance,
or ANJ Finance. The loan facility is the first fixed-rate-long-term
loan in Indonesian rupiah offered by IFC, and novel for the market since
the Asian financial crisis. The financing package is aimed at significantly
improving risk profile of ANJ Finance, especially related to interest rates.
The transaction also meets the company’s need for local currency financing
while offering benefits related to IFC’s global experience and knowledge
of international best practices.
ANJ Finance is a nonbank financial institution that plans to use the funds
to expand its automobile financing and leasing activities. The loan facility
will also help ANJ Finance manage risks associated with loans from other
institutions. Nonbank financial institutions are becoming increasingly
important for meeting the needs of consumers of smaller business in Indonesia.
“This loan facility supports the development of the nonbank financial
sector in Indonesia. Indonesia’s financial system is still dominated by
banks, with nonbank financial institutions achieving a mere 20 percent
of the country’s financial assets,” said IFC Country Manager German Vegarra.
“Local currency, fixed rate financing to ANJ Finance will help the Indonesian
consumer finance sector grow prudently.”
IFC Vice President, Finance Nina Shapiro, said, “IFC’s capacity to provide
long-term Indonesia Rupiah financing through market based mechanisms will
help the client avoid foreign exchange risk. By matching the currency denomination
of assets and liabilities, ANJ Finance can concentrate on its core businesses
and extend new long term consumer loan products in the local market without
worrying about exchange rate volatility”. She added, “The IFC local currency
financing demonstrates the Corporation’s commitment to support viable
projects that improve access to local consumer finance.”
“This loan will help us in developing our automobile financing and leasing
activities,” said ANJ Finance’s Director Herman Lesmana. “The
consumer finance market in Indonesia has enjoyed an annual growth rate
of about 50 percent since 1999, mostly due to demand for automobiles and
motorcycles. ANJ Finance can take advantage of this rapid expansion by
offering better and more comprehensive services.”
ANJ Finance is an Indonesian private multi finance company that primarily
provides financing for consumer purchases of new and used automobiles.
The company was previously known as PT. Elbatama Finance and in 2003;
the name was changed to PT. Austindo Nusantara Jaya Finance to reflect
association with its holding company, PT. Austindo Nusantara Jaya. ANJ
Finance is headquartered in Jakarta and also operates out of twelve branches
located in major cities in Java and Sumatra islands.
The mission of the International Finance Corporation (www.ifc.org)
is to promote sustainable private sector investment in developing countries,
helping to reduce poverty and improve people’s lives. IFC finances private
sector investments in the developing world, mobilizes capital in the international
financial markets, helps clients improve social and environmental sustainability,
and provides technical assistance and advice to governments and businesses.
From its founding in 1956 through FY04, IFC has committed more than $44
billion of its own funds and arranged $23 billion in syndications for 3,143
companies in 140 developing countries. IFC’s worldwide committed portfolio
as of FY04 was $17.9 billion for its own account and $5.5 billion held
for participants in loan syndications.