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 Name||Small and Medium-Sized Enterprise Financing Project|
|Borrower/Company||PT Indosurya Inti Finance
|Type or Modality of Assistance||
|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|
|Responsible ADB Division|
|Responsible ADB Officer||De Leon Dovale, Jacobo|
|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.|
|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|
|Last PDS Update||01 Oct 2019|
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
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|Title||Document Type||Document Date|
|Small and Medium-Sized Enterprise Financing Project: Report and Recommendation of the President||Reports and Recommendations of the President||Sep 2019|
|Small and Medium-Sized Enterprise Financing Project: Initial Poverty and Social Analysis||Initial Poverty and Social Analysis||Apr 2019|
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
None currently available.
Evaluation Documents See also: Independent Evaluation
None currently available.
None currently available.
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