Accounting for 99% of all enterprises, 89% of the private sector workforce and contributing as much as 57% to the country’s GDP, SMEs are the backbone of the Indonesian economy.
Indosurya Inti Finance is a Non-banking Financial Institution offering loans to individuals and SMEs in Indonesia, thus playing an essential role in supporting emerging businesses as well as established ones. Founded in 2011, IIF now relies on a strong network of 70 branches helping the financial institution better serve the needs of the SME segment, mostly composed of convenience retailers, business services and small industries.
Proparco, subsidiary of Agence Française de Développement (AFD) dedicated to private sector financing, acted as lead arranger for this 5 years syndicated loan with a €30 million participation while the Netherlands’ FMO committed €20 million.
Based on Indosurya’s average loan size, it is estimated that this €50 million loan will help IIF to support at least an additional 400 SMEs in the country. In the context of this transaction, Indosurya has committed to implementing international best practices in the management of environmental and social risk as well as to strengthening its financial risk management framework.