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IFC and Indonesia’s Family Business Nusantara Foundation Help Family-Owned Enterprises Improve Corporate Governance

Jakarta, Indonesia, November 8, 2016— IFC, a member of the World Bank Group, is helping Indonesian family-owned enterprises adopt effective governance practices to enhance their performance and access to finance. Around 95 percent of all businesses in Indonesia are family-owned and they are critical for job creation and economic growth.
Around 60 owners, board members, and high-level executives of Indonesian family businesses attended a seminar co-organized today by IFC and Family Business Nusantara (FBN) Foundation in Jakarta. IFC corporate governance experts shared with the participants best practices in family governance structures, the functioning of the board, and IFC’s corporate governance methodology.
“Setting up professional boards and introducing effective governance mechanisms will help family-owned enterprises avoid disruptions due to family feuds and increase their odds of survival through generations,” said IFC Corporate Governance Lead for East Asia and the Pacific Chris Razook. “We will continue to work closely with FBN to reach out to even more family businesses and strengthen governance practices in the market.”
The seminar is part of IFC and FBN’s partnership to promote good governance practices among family businesses. Numerous studies show that stronger governance helps companies operate more efficiently, manage risks better, thereby attracting more investors.
“An effective governance process put in place among family members will ensure the founder’s legacy, that is, harmony and unity in the next generations,” said Shanti Poesposoetjipto, Founder of FBN.
Poesposoetjipto is also Chairman of PT Samudera Indonesia Tbk., a shipping and integrated logistic service company founded by her late father, Soedarpo Sastrosatomo. She is a founding board member of Family Business Network Asia, the regional chapter of Family Business Network International, a nonprofit organization with more than 10,000 members across 58 countries.
IFC set up a Corporate Governance Program in Indonesia in 2012 to promote transparency and accountability in listed companies. IFC helped launch the country’s corporate governance roadmap and manual as part of a cooperation agreement with Indonesia’s Financial Services Authority, or OJK. IFC is also helping private firms improve their corporate governance practices.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with 2,000 businesses worldwide, we use our six decades of experience to create opportunity where it’s needed most. In FY16, our long-term investments in developing countries rose to nearly $19 billion, leveraging our capital, expertise and influence to help the private sector end extreme poverty and boost shared prosperity. For more information, visit
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About FBN
FBN is a not-for-profit foundation established by Shanti Poesposoetjipto and a group of professionals in Jakarta on January 9, 2014. FBN aims to promote good governance in managing family businesses in Indonesia by providing public seminars, workshops, teachings, publications, and consultancy.