The Jakarta Post
Multi-finance company PT Indosurya Inti Finance (Indosurya Finance) has received funding credit facilities totaling 50 million euro, equivalent to Rp 775.5 billion, from two large international financial institutions: Proparco from France and FMO from the Netherlands.
These funds will be earmarked to finance various practices of small and medium enterprises (SMEs) in Indonesia through working capital loans, SME financing products owned by Indosurya Finance.
Amid the liquidity issues faced by finance companies in Indonesia, Indosurya Finance remains trusted to get funding of 50 million euros for the SME financing sector, the first time the company has received a credit facility from these two international financial institutions.
Through their credit facilities to Indosurya Finance, Proparco and FMO reaffirm their commitment to helping SMEs access financial services, especially in developing countries such as Indonesia, where the SME sector is now one of the backbones of Indonesia's economy with a contribution of 57 percent to the country's GDP. This loan is estimated to be able to provide support to around 400 SMEs whose funding will be assisted through Indosurya Finance.
Proparco acted as lead arranger in this five-year syndicated loan process by lending funds amounting to 30 million euros, while FMO, a Dutch development bank, provided loans of 20 million pounds. Both of these large European international financial institutions are members of the European Development Finance Institutions (EDFI).
Proparco is a subsidiary of Agence Française de Developpement (AFD), founded in 1977 specifically to serve the private sector and sustainable development.
FMO is a Dutch development bank founded in 1970 to support sustainable private sector growth in developing and emerging markets by investing in businesses, projects and financial institutions.
Indosurya Finance, the first multi-finance company in Indonesia, focuses on providing financing facilities for small and medium businesses as a form of their commitment to supporting equitable economic growth for the people of Indonesia, especially in the SME sector.
"Indosurya Finance continues to innovate to improve service and product quality, and continues to strive to maintain trust and commitment in providing the best service for clients, both individuals and business entities. Our target for channeling financing for SME entrepreneurs in Indonesia through these credit facilities must be achieved within one to one-and-a-half years," said Henry Surya, CEO of Indosurya Finance.