IFC invests $40m in Indonesian SME ecosystem

The five-year financing package comprises $20 million from IFC’s own account plus another $20 million that IFC helped mobilize from three other organizations. These include international impact investors ResponsAbility and Mikrofinanzfonds, as well as emerging markets-focused fund manager Symbiotics.

The investment aims to develop SMEs including companies categorized as micro-sized. It will also focus on women-owned companies, student entrepreneurs and home renovation loans.

“This financing package is well-aligned with our strategy to maximize Indonesia’s private sector-led development, and support one of the country’s key development goals of creating jobs,” Azam Khan, IFC’s country manager for Indonesia, Malaysia and Timor-Leste, said in a statement.

IFC said there was an $11 billion annual financing gap in Indonesia’s SME space. It noted that although women contribute substantially to GDP growth in the country, they are at a disadvantage to men when applying for bank loans. 

As an investment arm of the World Bank, IFC claims to have mobilized more than $7.7 billion for private sector projects in Indonesia since 1968. Recent activity includes an LP commitment to the second Indonesia-focused fund from Falcon House Partners.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Southeast Asia
• Financials
• Credit
• Indonesia
• IFC
• SME
• Financial Services