BTPN MSME Loan (IFC-38934)

Regions
  • East Asia and Pacific
Where the impacts of the investment may be experienced.
Countries
  • 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
Approved
Bank Risk Rating
FI
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
Feb 3, 2017
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.
Borrower
PT BANK TABUNGAN PENSIUNAN NASIONAL TBK
The holder of the loan, grant, or other investment.
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, etc.
Investment Amount (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. 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, converted to USD$. 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, converted to USD$. Please see updated project documentation 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

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
  • International Finance Corporation (IFC)
Private Actors

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

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/