Jakarta, Indonesia, November 19,
2013 – IFC, a member of the World Bank Group, today signed a loan
agreement for up to $75 million with PT Bank Danamon Indonesia, Tbk. The
loan will fund lending and help create business opportunities for Indonesian
small and medium enterprises, which are crucial contributors to the country’s
economic growth but have limited access to finance.
SMEs comprise nearly 55 million units
in Indonesia, but just 30 percent have access to finance. IFC’s loan will
help support their growth by leveraging Danamon’s extensive SME-focused
financial and banking services and its vast geographical reach, including
frontier areas in eastern Indonesia.
“We feel strongly that this long-term
cooperation proves how Danamon and IFC share the objective of enhancing
Indonesia’s economic growth,” said Henry Ho, president director of Danamon.
“Indonesia has 55 million SMEs, which provide up to 15 million jobs, so
this cooperation will improve the welfare of Indonesians in line with Danamon’s
vision of caring and enabling millions to prosper.”
This is IFC’s second investment in
Danamon, following a 2006 senior loan of $150 million to fund micro and
SME segments. The loans underscore IFC’s and Danamon’s mutual commitment
to improving access to finance for micro businesses and SMEs, and strengthening
“SME lending plays an important role
in poverty alleviation,” said Sarvesh Suri, IFC’s country manager for
Indonesia. “Danamon has significant SME reach and our investment will
allow it to further support the development of Indonesian SMEs.”
The investment is in line with IFC’s
Indonesia strategy of strengthening the capacity of financial institutions
to better serve SMEs and promote local employment by focusing on viable
institutions that can scale up and respond to unmet demand.
“We are very proud of this strategic
partnership with IFC, and we are confident that Indonesian SMEs will benefit
from improved access to financing,” said Pradip Chhadva, director of treasury,
capital markets, financial institutions and transaction banking at Danamon.
PT Bank Danamon Indonesia, Tbk. (‘Danamon’)
was established in 1956 and as of September 30, 2013 operates a network
of around 3,300, including among others conventional branches, Danamon
Simpan Pinjam (DSP) and Syariah units as well as its subsidiaries branches.
As of September 30, 2013 Danamon provides its customers with close to 50,000
ATMs, including through its association with ATM Bersama and ALTO, in all
33 provinces in Indonesia. Danamon manages IDR 173 trillion in assets as
of September 2013.
Danamon was recently ranked first in
“Information Technology” and second in “Good Corporate Governance”
at the Indonesian Banking Awards 2013 held by Economic Review and Perbanas
Institute. Danamon was also awarded the Top 10 Publicly Listed Company
with the highest Good Corporate Governance (GCG) ASEAN Scorecard by Institute
for Corporate Directorship (IICD). Danamon also received the Banking Service
Excellence Awards 2013 in the overall, ATM, Teller, Call Center, and Sharia
categories from Infobank. Internationally, Danamon was included in the
2013 Forbes Global 2000, which is a list of the world’s biggest public
companies as compiled by Forbes Magazine.
Danamon is the sole issuer and acquirer
of American Express® cards in Indonesia under an independent operator agreement
which allows it to issue American Express cards to individual and corporate
clients. Danamon is also the only bank which provides services to local
merchants who accept American Express Cards and for signing up new merchant
partners in Indonesia. Danamon is also the sole license holder of Manchester
United cards in Indonesia, allowing the Bank to issue Manchester United
ATM/Debit cards and credit cards.
PT Adira Dinamika Multi Finance Tbk
(Adira Finance), the automotive financing subsidiary of Danamon, operates
an extensive branch network in more than 260 cities in Indonesia. Danamon
is also the majority owner of PT Asuransi Adira Dinamika (Adira Insurance),
a general insurance company and PT Adira Quantum Multifinance (Adira Kredit),
a durable goods financing company.
As of September 30, 2013, Danamon was
67.37% owned by Asia Financial (Indonesia) Pte. Ltd. and 26.25% by the
public as well 6.38% by JPMCB-Franklin Templeton Investment Funds.
For further information regarding Danamon,
please visit Danamon’s corporate website at: www.danamon.co.id
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. Working with private enterprises in more than 100 countries,
we use our capital, expertise, and influence to help eliminate extreme
poverty and promote shared prosperity. In FY13, our investments climbed
to an all-time high of nearly $25 billion, leveraging the power of the
private sector to create jobs and tackle the world’s most pressing development
challenges. For more information, visit www.ifc.org.