Ekonomi SME Loan (IFC-34288)

  • Indonesia
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
Bank Risk Rating
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Nov 6, 2014
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
The holder of the loan, grant, or other investment.
  • 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, etc.
Investment Amount (USD)
$ 45.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. 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, converted to USD$. Please see updated project documentation 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

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

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

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

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

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


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