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IFC, SMBC Help BTPN Expand Financing for Micro, Small, Medium and Women Entrepreneurs in Indonesia

Jakarta, Indonesia, March 3, 2015 —IFC, a member of the World Bank Group, and Sumitomo Mitsui Banking Corporation (SMBC) have agreed to provide an additional $300 million loan to PT Bank Tabungan Pensiunan Nasional Tbk (BTPN) to help the mid-sized Indonesian bank increase lending to low-income families, micro and small businesses, and women entrepreneurs.
IFC provided the Indonesian rupiah equivalent of $75 million for its own account and mobilized an additional $225 million in Indonesian rupiah from SMBC, which owns a 40 percent stake in BTPN. The funding will help BTPN expand access to finance in Indonesia, including for an estimated two million women entrepreneurs, and develop new products to better serve its customers.
”These past few years BTPN has developed a very strong strategic partnership with IFC, which we believe has significantly supported BTPN in achieving its vision to be the best mass market bank, making a difference in the lives of millions,” said Jerry Ng, President Director of BTPN. “With SMBC playing a significant role in this cooperation, we see an even stronger collaboration that demonstrates a joint commitment to provide wider access to financing to benefit our country’s economic development.”
In Indonesia, women entrepreneurs and smaller businesses still face significant challenges in obtaining access to credit. Over the next four years, BTPN aims to increase its lending to the micro, small and medium enterprises, and the productive poor to reach more than a few million customers. The majority of these will be micro women entrepreneurs whom BTPN intends to reach through its sharia subsidiary, BTPN Syariah.
“SMBC has contributed to BTPN's faster loan growth and is committed to continuing to lower its costs of funding,” said Masayuki Shimura, SMBC's Managing Director, Head of Asia Pacific Division and Emerging Markets Business Division. “SMBC intends to support the sustainable growth of BTPN through further collaboration.”
“BTPN is our strategic partner in promoting financial inclusion in Indonesia, an objective aligned with the Indonesian government’s priorities,” said IFC Indonesia’s Country Manager Sarvesh Suri. “Improving access to financial services to underserved segments, including women and rural entrepreneurs, helps them grow their businesses and better support their families.”
This is the second joint investment by IFC and SMBC in BTPN. Last August, IFC and SMBC provided a financing package comprising a $50 million Indonesian rupiah-equivalent senior loan to the bank, as well as $150 million in rupiah equivalent financing, in which $50 million came from IFC and $100 million came from SMBC, to fund the growth of its micro, small and medium enterprise financing business.
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 about 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and boost shared prosperity. In FY14, we provided more than $22 billion in financing to improve lives in developing countries and tackle the most urgent challenges of development. For more information, visit .
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About Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation (SMBC) was established in April 2001 through the merger of two leading Japanese banks: The Sakura Bank Limited and The Sumitomo Bank Limited. Sumitomo Mitsui Financial Group Inc. was established in December 2002 as a bank holding company, and SMBC became a wholly owned subsidiary of SMFG. SMBC’s competitive advantages include a large customer base, the quick implementation of strategies, and an extensive lineup of financial products and services that leverage the expertise of strategic Group companies in specialized areas. SMBC, as a core member of SMFG, works together with other members of the Group to offer customers highly sophisticated, comprehensive financial services.
About PT Bank Tabungan Pensiunan Nasional Tbk
Founded in 1958, PT Bank Tabungan Pensiunan Nasional Tbk (BTPN) focuses on the mass market of micro banking and pensioners. As of December 2014, the bank has more than 1,200 branches across 260 cities in Indonesia, total assets of 75 trillion rupiah, and a strong capital adequacy ratio of 23 percent. It is known as a reputable mid-sized public bank with one of the best financial performances in Indonesia. Fitch Ratings has assigned a National Rating of AA+ (idn) to BTPN’s public debt programs.