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IFC Helps Increase Motorcycle Financing for Indonesian Businesses, Low-income Households

Indonesia, Jakarta, July 6, 2010— IFC, a member of the World Bank Group, will provide up to $75 million to PT Summit Oto Finance to help expand access to financing of motorcycles, which are critical for the business needs and mobility of micro and small businesses and low-income households.
IFC’s investment also will help PT Summit Oto Finance focus its growth on frontier provinces and women borrowers in Indonesia. The first part of IFC’s financing, which was committed today, includes a senior loan of up to $50 million equivalent in rupiah. The remaining $25 million senior loan will be committed later this year.  IFC also will help the company raise additional funding through IFC’s syndication program.
“This is our second remarkable transaction with IFC, following the first in 2008,” said Kenji Murakami, the Group Chief Financial Officer of PT Summit Oto Finance.  “We are very pleased with IFC’s continuous support and its financing not only will support our business expansion, but also will help us improve the quality of lives of our customers.”
Adam Sack, IFC Country Manager for Indonesia, said, “We are pleased to continue supporting PT Summit Oto Finance to expand its portfolio and networks to frontier provinces, as well as to women borrowers.  Motorcycle finance has proven to be a viable means of increasing financial inclusion in Indonesia.  IFC’s investment will help improve access to finance for small and micro businesses, and low- income households, as well as strengthen Indonesia’s nonbank financial sectors.”
PT Summit Oto Finance is an existing IFC client and is largely owned by Sumitomo Corporation, Japan. Sumitomo is a multinational corporation with whom IFC has established a long-term relationship through several projects both in and outside Indonesia.
Djohan Marzuki, President Director and CEO of PT Summit Oto Finance, said, “We highly value our relationship with IFC and believe that this partnership is worth more than its monetary value.  We look forward to collaborating more intensively with IFC in the future.”
Microfinance is a critical tool in the fight against poverty.  IFC provides investments and advice to the microfinance sector in developing countries by focusing on viable microfinance institutions that can scale up and respond to unmet demand.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing capital for private enterprise, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit www.ifc.org .
About PT Summit Oto Finance
PT Summit Oto Finance, known as SOF, is one of the largest motorcycle-financing companies in Indonesia. SOF started its financing operation in June 2003, and currently concentrates on new motorcycle financing. As an independent financing company, SOF provides financing to all brands and types of motorcycles. The company has over a million customers and operates more than 120 networks located throughout Indonesia. In the past few years, SOF has successfully grown its business, gradually increasing its market share and existence in the market. For more information, visit www.Otofinance.co.id .