fbpx 53123-001: Small and Medium-Sized Enterprise Financing Project | Asian Development Bank

Indonesia: Small and Medium-Sized Enterprise Financing Project

Nonsovereign (Private) Project | 53123-001 Status: Proposed

Asian Development Bank (ADB) will provide a senior unsecured loan to PT Indosurya Inti Finance (Indosurya) of up to $30 million (or its rupiah, equivalent) of up to 5 years. In the event that the A loan or part of it is denominated in US dollars, ADB expects to syndicate a B loan of up to $50 million by mobilizing impact investors and other eligible B loan participants, subject to market conditions. ADB also expects to provide a TA to support and enhance Indosurya's asset and liability management framework.

Project Details

Project Officer
De Leon Dovale, Jacobo Private Sector Operations Department Request for information
Country
  • Indonesia
Sector
  • Finance
 
Project Name Small and Medium-Sized Enterprise Financing Project
Project Number 53123-001
Borrower/Company PT Indosurya Inti Finance
Country Indonesia
Location Nation-wide
Type or Modality of Assistance
B-Loan Other USD 50.00 million Approved
Loan Ordinary capital resources USD 30.00 million Approved
Strategic Agendas Inclusive economic growth
Drivers of Change Partnerships
Private sector development
Sector / Subsector

Finance / Small and medium enterprise finance and leasing

Gender Equity and Mainstreaming Effective gender mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Private Sector Financial Institutions Division
Responsible ADB Officer De Leon Dovale, Jacobo
Project Sponsor(s)
Description Asian Development Bank (ADB) will provide a senior unsecured loan to PT Indosurya Inti Finance (Indosurya) of up to $30 million (or its rupiah, equivalent) of up to 5 years. In the event that the A loan or part of it is denominated in US dollars, ADB expects to syndicate a B loan of up to $50 million by mobilizing impact investors and other eligible B loan participants, subject to market conditions. ADB also expects to provide a TA to support and enhance Indosurya's asset and liability management framework.
Objectives and Scope The proposed loan to Indosurya will support the onlending and expansion of its small and medium-sized enterprise (SME) loan portfolio. Funding from the ADB will provide support for critically needed financial products and services to this underserved segment in Indonesia with targeted support for women SME clients and borrowers in less-penetrated geographical markets, primarily outside Greater Jakarta.
Linkage to Country/Regional Strategy The project is consistent with ADB''s Strategy 2030, especially its operational priorities of (i) addressing remaining poverty and reducing inequalities by facilitating quality job creation through SMEs, and (ii) accelerating progress in gender equality by narrowing the gender gap through economic empowerment through better access to finance for women SMEs. The project is also consistent with ADB''s country partnership strategy for Indonesia, 2016 -2019, which aims to support Indonesia by fostering higher and more inclusive growth, including by expanding access to financing to SMEs so they become more competitive. The project is aligned with ADB''s Gender Equality and Women's Empowerment Operational Plan, 2013 2020. It also complements ADB''s finance sector sovereign operation in Indonesia, which support financial inclusion and fintech reform.
Safeguard Categories
Environment FI
Involuntary Resettlement FI-C
Indigenous Peoples FI-C
Summary of Environmental and Social Aspects
Environmental Aspects The project involves financing SMEs with ADB proceeds, which will have very limited direct climate change impact.
Involuntary Resettlement The business activities of Indosurya and its subborrowers are unlikely to engage in involuntary land acquisition that may result in physical or economic displacement risks and impacts.
Indigenous Peoples The nature of Indosurya''s operations and its subborrowers' business activities are unlikely to entail impacts on indigenous peoples.
Stakeholder Communication, Participation, and Consultation Indosurya pledges to implement good corporate governance to maintain long-term business continuity. In doing so, Indosurya''s whistleblowing system primarily relies on the participation of its employees, suppliers, customers, and partners. The policy encourages these stakeholders to report concerns on corruption and bribery, illegal levies and extortion, embezzlement of assets, abuse of authority, and information leaks. Indosurya engages with civil society organizations in implementing its corporate social responsibility programs.
Timetable for assistance design, processing and implementation
Concept Clearance 19 Mar 2019
Credit Committee Meeting 30 Jul 2019
Approval -
Last PDS Update 01 Oct 2019

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