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IFC Provides $77 Million to Support Small and Medium Entrepreneurs in Indonesia

SDG 8: Decent work and economic growth,
 Feb 2018

Jakarta, Indonesia, February 2, 2018—IFC, a member of the World Bank Group, today announced a $77 million senior loan facility to PT. Indosurya Inti Finance (Indosurya), a local multifinance company. The IFC-led financing package aims to bolster the country’s small and medium enterprises (SMEs), which serves as the engine of job creation and economic growth.

With financial institutions focusing on the largest and the smallest businesses, Indonesia faces a dilemma of the ‘missing middle.’ Around 700,000 SMEs in the country are often neglected, despite contributing an estimated 22 percent to Indonesia’s GDP. Also, SMEs and microenterprises jointly employ over 89 percent of the nation’s workforce. 

IFC’s funding commitment — along with advisory assistance — is part of its broader efforts to foster private sector finance to the underserved and help drive investments in Indonesia’s SME sector. This will help Indosurya to increase its lending for SMEs across the islands of Java, Bali and Sumatra, while adopting best practices in risk management.

“Financial inclusion is vital to economic growth. IFC pays particular attention to the strong business case being made for investing in SMEs, as it increases employment and drives growth in Indonesia,” said Azam Khan, IFC Country Manager for Indonesia, Malaysia and Timor-Leste. “Indosurya’s commitment to banking SMEs is expected to set a high benchmark for other financial institutions in Indonesia and we look forward to a long and mutually beneficial relationship.”

According to a study commissioned by IFC in 2016, an estimated 54 percent of SMEs was keen for a bank loan, and the potential demand for credit from Indonesia’s SME market stood at a substantial $11 billion. It is, therefore, imperative that Indonesia cultivates a sustainable non-banking financial institutions sector, which caters better to smaller sized customers and provides targeted financing efficiently.

The financing package comprises $20 million from IFC’s own account and another $57 million that IFC helped mobilize from seven other lenders. This includes two development finance organizations — Oesterreichische Entwicklungsbank AG (OeEB) and Swiss Investment Fund for Emerging Markets (SIFEM), four impact investors — responsAbility SICAV (Lux), BlueOrchard Finance, MicroVest Short Duration Fund, LP and Oikocredit Ecumenical Development Cooperative Society U.A. — and one commercial bank, AfrAsia Bank Limited.

Henry Surya, CEO of Indosurya Inti Finance, said, “We are delighted with the commencement of our strategic partnership with IFC and all respective lenders. As a multifinance company that focuses on the SME sector, we envision this cooperation as a long-term relationship, where IFC can bring in global standards and experiences, extensive networks, best practices, and wide-ranging knowledge, through its programs around the world."

The World Bank Group has taken on an ambitious goal of universal financial inclusion by 2020. IFC is providing investments and advisory services to financial intermediaries catering to small businesses, and promotes the use of credit bureaus and collateral registries, as well as financial technology. Present in Indonesia since 1968, IFC has financed and mobilized over $7.7 billion for private sector projects over the past 49 years.

Indosurya, part of the Indosurya Group of companies, began operations in 2011, and provides multipurpose, working capital and investment financing. The privately-owned company now serves close to 2,000 clients, and provides credit to SMEs through 70 branch offices, with point of sales spread across Java, Bali and Sumatra.

About IFC

IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In FY17, we delivered a record $19.3 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity. For more information, visit

About Oesterreichische Entwicklungsbank AG (OeEB)

Oesterreichische Entwicklungsbank AG (OeEB) has been operating as the Development Bank of Austria since March 2008. It specializes in the provision of long-term finance for the implementation of private sector projects in developing countries which create sustainable development. For more information, visit

About Swiss Investment Fund for Emerging Markets (SIFEM)

SIFEM is the Swiss development finance institution. It specializes in providing long-term financing to small and medium-sized enterprises and other fast-growing companies in developing and emerging countries. For more information, visit

About responsAbility Investments AG (responsAbility)

responsAbility is a leading asset manager in the field of development investments and manages a range of investment vehicles that supply financing to high-impact companies in emerging economies. responsAbility has $3 billion of assets under management. For more information, visit

About BlueOrchard Finance (BluefaOrchard)

BlueOrchard Finance is a leading global impact investment manager. With a major global presence and offices on four continents, BlueOrchard has invested to date more than USD 4,7bn across 70 emerging and frontier markets, enabling tangible social impact. For more information, visit

About MicroVest Short Duration Fund (MicroVest)

MicroVest Capital Management is an asset management firm offering impactful global investment opportunities for over 14 years. MicroVest lends capital to under-banked markets, providing access to a growing portfolio of sustainable, responsible, and scalable financial institutions. For more information, visit

About Oikocredit Ecumenical Development Cooperative Society U.A. (Oikocredit)

Oikocredit’s loans, investments and capacity building aim to enable people living on low incomes to sustainably improve their living standards. Oikocredit finances around 800 partners in 70 countries. For more information, visit

About AfrAsia Bank Limited (AfrAsia Bank)

Headquartered in Mauritius, AfrAsia Bank Limited specializes in banking that builds bridges between Africa, Asia and the World. AfrAsia Bank Limited’s core banking and transactional capabilities are also complemented by its asset management arm, AfrAsia Capital Management Limited. For more information, visit

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Inquiry and contact information

Riham Mustafa

IFC International Finance Corporation

(20-2) 2461-4230