Ekonomi SME Loan (IFC-34288)

  • 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
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
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
Nov 6, 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.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 45.00 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)
$ 45.00 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 Oct 6, 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 (the “Project”) will likely consist of a senior debt package for up to US$45 million to PT. Bank Ekonomi Raharja, Tbk. (“Bank Ekonomi” or “the Bank”) in Indonesia. The Project will support the Bank’s lending program for SMEs. The IFC financing package will allow the Bank to expand the volume and maturity of its SME loan portfolio. The proposed project is also consistent with both IFC’s Indonesia and financial markets strategy given that this project will help provide more access to finance for SMEs, and promote job creation.

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. Job creation: To eventually create more local employment opportunities by increasing access to finance for SMEs.
2. To support economic growth in frontier regions: While big cities in Indonesia especially Jakarta are growing rapidly with increased banking penetration, frontier regions are left behind in terms of access to finance for SMEs, which hinders the economic growth in these regions. Having established its strong network in the frontier regions with plans to expand into other frontier regions to provide access to finance for SMEs, Bank Ekonomi will support the continued growth of the local economy.

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

The proposed project will likely consist of a debt facility amounting up to US$45 million equivalent in Rupiah on IFC’s own account to Bank Ekonomi.

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.

The Bank was established on 15 May 1989 as PT Bank Mitra Raharja and renamed PT Bank Ekonomi Raharja (also called Bank Ekonomi) four months later. On 22 May 2009, HSBC Holdings Plc. through its subsidiary, HSBC Asia Pacific Holdings (UK) Limited, acquired 88.89% shares of the Bank, which is increased to 98.94% by now. HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. The Group serves customers worldwide from over 6,200 offices in over 74 countries and territories in Europe, Asia, North and Latin America, and the Middle East and North Africa. With assets of US$2,754billion at 30 June 2014, HSBC is one of the world’s largest banking and financial services organizations.

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.

Main Contact person : Antony Colin Turner 
Email address : mailto:tonyturner@bankekonomi.co.id 
Telephone number : 021-2554 5800 
Website : http://www.bankekonomi.co.id


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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