Jakarta, Indonesia, November 19, 2013 –
IFC, a member of the World Bank Group, today signed a loan agreement for up to $75 million with PT Bank Danamon Indonesia, Tbk. The loan will fund lending and help create business opportunities for Indonesian small and medium enterprises, which are crucial contributors to the country’s economic growth but have limited access to finance.
SMEs comprise nearly 55 million units in Indonesia, but just 30 percent have access to finance. IFC’s loan will help support their growth by leveraging Danamon’s extensive SME-focused financial and banking services and its vast geographical reach, including frontier areas in eastern Indonesia.
“We feel strongly that this long-term cooperation proves how Danamon and IFC share the objective of enhancing Indonesia’s economic growth,” said Henry Ho, president director of Danamon. “Indonesia has 55 million SMEs, which provide up to 15 million jobs, so this cooperation will improve the welfare of Indonesians in line with Danamon’s vision of caring and enabling millions to prosper.”
This is IFC’s second investment in Danamon, following a 2006 senior loan of $150 million to fund micro and SME segments. The loans underscore IFC’s and Danamon’s mutual commitment to improving access to finance for micro businesses and SMEs, and strengthening financial inclusion.
“SME lending plays an important role in poverty alleviation,” said Sarvesh Suri, IFC’s country manager for Indonesia. “Danamon has significant SME reach and our investment will allow it to further support the development of Indonesian SMEs.”
The investment is in line with IFC’s Indonesia strategy of strengthening the capacity of financial institutions to better serve SMEs and promote local employment by focusing on viable institutions that can scale up and respond to unmet demand.
“We are very proud of this strategic partnership with IFC, and we are confident that Indonesian SMEs will benefit from improved access to financing,” said Pradip Chhadva, director of treasury, capital markets, financial institutions and transaction banking at Danamon.
PT Bank Danamon Indonesia, Tbk. (‘Danamon’) was established in 1956 and as of September 30, 2013 operates a network of around 3,300, including among others conventional branches, Danamon Simpan Pinjam (DSP) and Syariah units as well as its subsidiaries branches. As of September 30, 2013 Danamon provides its customers with close to 50,000 ATMs, including through its association with ATM Bersama and ALTO, in all 33 provinces in Indonesia. Danamon manages IDR 173 trillion in assets as of September 2013.
Danamon was recently ranked first in “Information Technology” and second in “Good Corporate Governance” at the Indonesian Banking Awards 2013 held by Economic Review and Perbanas Institute. Danamon was also awarded the Top 10 Publicly Listed Company with the highest Good Corporate Governance (GCG) ASEAN Scorecard by Institute for Corporate Directorship (IICD). Danamon also received the Banking Service Excellence Awards 2013 in the overall, ATM, Teller, Call Center, and Sharia categories from Infobank. Internationally, Danamon was included in the 2013 Forbes Global 2000, which is a list of the world’s biggest public companies as compiled by Forbes Magazine.
Danamon is the sole issuer and acquirer of American Express® cards in Indonesia under an independent operator agreement which allows it to issue American Express cards to individual and corporate clients. Danamon is also the only bank which provides services to local merchants who accept American Express Cards and for signing up new merchant partners in Indonesia. Danamon is also the sole license holder of Manchester United cards in Indonesia, allowing the Bank to issue Manchester United ATM/Debit cards and credit cards.
PT Adira Dinamika Multi Finance Tbk (Adira Finance), the automotive financing subsidiary of Danamon, operates an extensive branch network in more than 260 cities in Indonesia. Danamon is also the majority owner of PT Asuransi Adira Dinamika (Adira Insurance), a general insurance company and PT Adira Quantum Multifinance (Adira Kredit), a durable goods financing company.
As of September 30, 2013, Danamon was 67.37% owned by Asia Financial (Indonesia) Pte. Ltd. and 26.25% by the public as well 6.38% by JPMCB-Franklin Templeton Investment Funds.
For further information regarding Danamon, please visit Danamon’s corporate website at:
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