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IFC Joins Forces with Family Business Nusantara Foundation (Indonesia) to Improve Corporate Governance of Family-Owned Enterprises

Jakarta, Indonesia, June 11, 2014 —IFC, a member of the World Bank Group, today signed a memorandum of understanding with the newly established Family Business Nusantara (FBN) Foundation (Indonesia) to improve the corporate-governance of family-owned businesses, which are critical for job creation and economic growth.
IFC and FBN plan to engage with targeted family businesses and organize family-governance training, as well as other events to raise awareness on the importance of good corporate governance.  The partnership will help companies operate more efficiently, improve access to capital, mitigate risk, and safeguard against mismanagement.
“Partnering with IFC is a big step toward our goal of strengthening corporate-governance practices in family-owned businesses, which make up the bulk of Indonesian companies,” said Shanti Poesposoetjipto, Founder of FBN and Chairman of PT Samudera Indonesia Tbk., a shipping and integrated logistic service company founded by her late father, Soedarpo Sastrosatomo.
In Indonesia, family businesses make up around 60 percent of listed companies. Although family businesses generally have the long-term commitment of the owners, they also face complex issues such as succession planning. Introducing professional board practices and setting up family-governance mechanisms help family-owned enterprises avoid business disruptions due to family feuds and strengthen their business focus and long-term sustainability.  
“Good corporate- and family-governance practices improve a business’s stability, performance and sustainability,” said IFC Indonesia Country Manager Sarvesh Suri. “Partnering with FBN will help us reach out to its family businesses and support our goal of strengthening governance practices in the market.”
Poesposoetjipto is one of the founders and a board member of the Family Business Network Asia, the regional chapter of Family Business Network International, a nonprofit organization with more than 6,500 family business leaders in 56 countries. In addition to Indonesia, Family Business Network Asia covers China, Hong Kong, Malaysia, the Philippines, and Thailand. Its vision is to create a vibrant community of progressive family businesses that serve as a model of sustainability and initiate social change through research, capacity building, and outreach programs.
IFC set up a Corporate Governance Program in Indonesia in 2012 to promote transparency and accountability in listed companies and has recently helped launch the corporate-governance roadmap and manual as part of a cooperation agreement between IFC and the Financial Services Authority. IFC is also helping private firms improve their corporate-governance practices. The program has conducted more than 10 seminars and conferences, such as a women leaders’ forum, training for family businesses, and lectures at some Indonesian universities.
About IFC
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 .
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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.
For more information, please contact Cosmas Christanmas, Chairman of the Executive Board of FBN: Tel: +62-816-187.1847.