Muamalat SME (IFC-33884)

Countries
  • Indonesia
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Hold
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
FI
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Apr 24, 2014
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
BANK MUAMALAT INDONESIA, PT TBK
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 60.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 60.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS May 7, 2020

Disclosed by Bank Mar 25, 2014

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

The proposed project will consist of a debt facility to PT. Bank Muamalat Indonesia, Tbk. (“Bank Muamalat” or the “Bank”) to support expansion of the Bank’s lending to small and medium enterprises (“SMEs”). Bank Muamalat, established in 1991, is the first Islamic bank and the largest private sector Islamic bank (in terms of asset size) in Indonesia. The proposed project is consistent with both IFC’s Indonesia and financial markets strategy and roles given that this project will help support sustainable rural and urban development through increase access to finance for SMEs. The proposed project is expected to help expand the products and services in Islamic financing in order to support financial inclusion and increased outreach to the base of the pyramid and to the underserved segments in Indonesia.

People Affected By This Project
People Affected By This Project refers to the communities of people likely to be affected positively or negatively by a project.

(1). Promoting economic development in frontier provinces: The project will directly improve access to finance in the frontier provinces of Indonesia, where Bank Muamalat is planning to expand its portfolio to MSME segments, and thus drive economic growth, job creation, and poverty reduction in the frontier provinces.
(2). Increasing MSME access to medium and long-term finance: As Bank Muamalat grows its MSME financing portfolio, the project will allow IFC to increase access to longer term finance to the MSME segment through Bank Muamalat.
(3). Demonstration effect: A successful project with Bank Muamalat will further promote product offerings and banking services such as Islamic financing among Indonesian banks and therefore support financial inclusion to the underserved MSME.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The proposed project will consist of a debt facility amounting up to US$60 million on IFC’s own account to Bank Muamalat.

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Bank Muamalat is headquartered in Jakarta and had total assets of US$4.4 billion (as of September 2013). The Bank provides Islamic banking services and products to around 3million customers through over its 450branches, which are located in major islands throughout Indonesia. The Bank also works together with National Post Services (or “PT. Pos Indonesia”) to leverage its massive network to reach rural and remote areas. Bank Muamalat operates over 1,200 ATMs to support its electronic banking business. Currently, Bank Muamalat has a total workforce of around 5,000 people. The proposed project will support the Bank’s growth strategy and increase its SME portfolio in the fast-growing Indonesia banking sector.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

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