Danamon Syariah (IFC-36852)

Regions
  • East Asia and Pacific
Geographic location where the impacts of the investment may be experienced.
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
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
U
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."
Borrower
BANK DANAMON 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 Amount (USD)
Not Disclosed
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 Oct 6, 2018

Disclosed by Bank Feb 3, 2016


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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.

According to bank documents, the proposed project supports the expansion of Islamic trade finance operations of PT Bank Danamon Indonesia, Tbk, which is a leading Indonesian commercial bank. IFC to establish a Murabaha Trade Co-financing Facility to provide trade financing to the Bank's corporate customers in selected agri-commodity sectors (in both US Dollars and Indonesian Rupiah or on a sharia compliant basis. IFC has developed the Murabaha co-financing structure as a customized financial solution to engage with Danamon to support expansion of its Islamic banking operations which are carried out through the Bank's Islamic financing unit, Bank Danamon Sharia. Through the Project, IFC will partner with Danamon to support: (i) expansion of its Islamic banking business, particularly in trade finance; and (ii) engagement in the financing of critical commodities, which has is a priority for the Government of Indonesia (GOI) to ensure domestic food supply sustainability. The Project support the Bank's Critical Commodities Program, introduced in late 2013 to support the supply and distribution of essential foods and agricultural products within 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 the urban sustainability: The Project facilitates the trade for critical commodities which is critical to the food supplies of the country''s population, thus addressing food security, which is an integral part of maintaining sustainable urbanization.
2. Increasing the trade growth of critical commodity: The Project will provide the much needed financing to corporates who are engaged in commodity related trade activities. This will help the players grow their operations and expand their markets internationally, which would boost the trade growth for critical commodity and ultimately could increase the rural income.
3. Increasing Environmental and Social performance management in agri-trade business in Indonesia: The Project will expand the scope of E&S Performance management and hence promoting best practices of Environmental and Social in the agricultural related trade business.

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

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.

No contact information provided at the time of disclosure.

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/

How it works

How it works