IFC Provides $40 Million to Support Small Scale Entrepreneurs in Indonesia

IFC, a member of the World Bank Group, today announced a $40 million senior loan facility to PT Radana Bhaskara Finance Tbk (Radana). The IFC-led financing package aims to develop the country’s micro, small and medium enterprises (MSMEs), and increase financing for women-owned MSMEs. 

Financing MSMEs in emerging markets like Indonesia is crucial because they serve as an engine for growth and job creation. According to “Women-owned SMEs in Indonesia: A Golden Opportunity for Local Financial Institutions,” a study commissioned by IFC in 2016, the MSME financing gap in Indonesia is $11 billion annually. The report highlights the challenges that MSMEs—particularly women-owned—face when accessing bank loans. Women in Indonesia contribute to job creation as well as nine percent of GDP growth, but when it comes to bank loans, they tend to be treated differently than men. 

The funding commitment is part of IFC’s broader efforts to foster private sector participation, increase access to finance for the underserved and help drive investments in Indonesia’s MSME sector. This financing package will enable Radana, a local multifinance company, to increase its lending for MSMEs, women entrepreneurs, students, and home renovation loans. 

“IFC is committed to promoting the growth of MSMEs, creating markets, and spurring innovation in Indonesia,” said Azam Khan, IFC Country Manager for Indonesia, Malaysia and Timor-Leste. “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.” 

The five-year financing package comprises $20 million from IFC’s own account and another $20 million that IFC helped mobilize from three other lenders, including two international impact funds namely, responsAbility SICAV (Lux), and IIV Mikrofinanzfonds and one international fund manager, Symbiotics SA, through its MSME Bond platform. 
“Radana is dedicated to supporting small scale entrepreneurs in Indonesia, and this package aims to bolster financial inclusion across the country,” said Evy Indahwaty, President Director of Radana. “Radana wishes to thank IFC for arranging the total financing package of $40 Million, and looks forward to working together to develop a more comprehensive Risk Management Framework within Radana. We hope this will continue to be a mutually beneficial and sustainable relationship.” 

In an effort to fulfill the World Bank Group’s Financial Inclusion objective, which aims to mobilize private sector funding to address Indonesia’s shortage of loans to MSMEs, IFC has been at the forefront of investing and mobilizing financing to support MSMEs. Present in Indonesia since 1968, IFC has financed and mobilized over $7.7 billion for private sector projects over the past 49 years. 

Radana is a publicly listed company, established in 1972, providing credit to small scale entrepreneurs and low-income borrowers through 56 branches spread across Java and Sumatera. Radana provides motorcycle, multipurpose, working capital and investment financing, and is 71 percent owned by PT Tiara Marga Trakindo.   

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 Symbiotics 

Symbiotics SA is an investment company specialized in emerging, sustainable and inclusive finance. Since its inception in 2005, it has invested USD 3.8 billion in more than 360 institutions in 75 emerging countries, working as an advisor or manager of about 30 investment funds and many institutional investors. The firm is headquartered in Geneva, Switzerland, with offices in Cape Town, London, Zurich, Mexico City and Singapore, regrouping over 100 employees globally. Symbiotics currently reaches out, indirectly through its investments, to 1,500,000 small enterprises and low income households at the base of the pyramid in emerging and frontier markets. 

About responsAbility Investments AG 

responsAbility is a leading asset manager in the field of development investments. The company’s investment vehicles supply debt and equity financing to companies with inclusive business models in developing economies. responsAbility has USD 3.1 billion of assets under management that is invested in 550 companies in 97 countries. The company is headquartered in Zurich and has local offices in Bangkok, Geneva, Hong Kong, Lima, Luxembourg, Mumbai, Nairobi, Oslo and Paris. For further information, visit: 

Invest in Visions – specialists for impact investments

Invest in Visions GmbH was founded by Edda Schröder in 2006 with the vision of offering institutional and retail investors access to impact investments - that is, investments that offer investors both financial and social returns. We have made a name for ourselves as a pioneer in microfinance investments. In 2011, we achieved an important milestone with the launch of our IIV Mikrofinanzfonds, the first fund of this asset class in Germany for retail and institutional investors. In addition to microfinance, we specialise in investments in sustainable agriculture, social enterprises and social impact lending (social bonds, for example, in the areas of healthcare, education, social housing). Thanks to our long-term experience and an extensive network of specialists, we are able to draw on considerable expertise when selecting and evaluating sustainable and social investment products. Find out more about us: In this transaction IIV Mikrofinanzfonds was advised by Incofin Investment Management:

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