BTPN MSME Loan (IFC-38934)

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
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
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
Feb 3, 2017
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
PT BANK TABUNGAN PENSIUNAN NASIONAL 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)
$ 100.00 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.
Loan Amount (USD)
$ 100.00 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)
$ 100.00 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 Jul 14, 2018

Disclosed by Bank Dec 22, 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 IFC website, the project, which bodes well with IFC’s financial inclusion agenda in Indonesia, involves a loan facility to PT. Bank Tabungan Pensiunan Nasional Tbk. The proceeds will be used to fund the growth of the Bank’s micro and small and medium enterprises businesses and loans to women borrowers. This facility will in turn allow BTPN to increase access to finance for the segments of the population that are currently underserved. As the facility will have a longer tenor than usual deposits, the project will also help BTPN to strengthen its balance sheet structure by reducing its asset-liability maturity mismatch. It is expected to have the following development impact: 

1. Increasing the Bank's ability to provide access to finance to MSMEs, which will in turn stimulate growth, creates jobs and help reduce poverty. BTPN will be able to increase its outreach, incorporating millions of new entrepreneurs to the formal financial sector.

2. Increasing access to finance to women borrowers at the bottom of pyramid and women-owned SMEs which helps address the significant financing and capacity gap faced by women in emerging markets.

3. Increasing outreach to population in remote areas through digital banking allowing more individuals obtain formal financial services.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
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.

BTPN is a publicly traded bank in Indonesia and its shareholding structure is as follows: (i) Sumitomo Mitsui Banking Corporation (“SMBC”, 40.0%); (ii) Summit Global Capital Management (“SGCM”, 20%), TPG Nusantara (8.4%); (iii) the public (30.2%); and (iv) IFC (1.4%). SMBC is part of the Sumitomo Mitsui Financial Group, Inc. (“SMFG”), which is one of the three largest financial groups in Japan. SGCM is a wholly-owned subsidiary of Sumitomo Corporation, one of the largest general trading companies worldwide, and a member company of Sumitomo Group. TPG Nusantara is a consortium controlled by TPG Capital (“TPG”), a well-regarded private investment partnership that was founded in 1992 and currently has more than $70 billion of assets under management.


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.

Project Contact: Arief Harris Tandjung
Director, PT. Bank Tabungan Pensiunan Nasional Tbk. 
Contact No.: +62 21 30026200, Fax : +62 21 30026101
Email Address: arief.harris@btpn.com
Office Address: Menara BTPN, CBD Mega Kuningan, Jl. Dr. Ide Anak Agung Gde Agung Kav. 5.5 – 5.6, Jakarta 12950
Website: http://www.btpn.com/

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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