Jakarta. The International Finance Corporation, along with three other lenders, agreed to provide a syndicated loan worth $40 million to motorcycle financing firm Radana Bhaskara Finance, the World Bank's financing arm for the private sector said in a statement on Thursday (28/12).
IFC said the loan is especially intended to support micro-, small- and medium-sized enterprises (MSMEs) and women-owned SMEs in the country. Radana, 71 percent owned by local heavy equipment distributor Tiara Marga Trakindo, offers loans to small scale entrepreneurs and low-income borrowers through 56 branches across Java and Sumatra.
Radana provides motorcycle, multipurpose, working capital and investment financing especially targeted to small automotive dealers in the country. IFC, who acted as the lead arranger, will provide $20 million, while the remaining funds will be provided by two other lenders.
"The fund is aligned with our strategy to develop Indonesia’s private sector and support one of the government’s development goals, which is to create jobs," Azam Khan, IFC country manager for Indonesia and Malaysia, said in the statement.
The senior loan facility falls under the framework of the World Bank’s Financial Inclusion program, which aims to address the shortage of loans for SMEs by providing investment and mobilizing private sector funds.
"Radana is dedicated to supporting small entrepreneurs in Indonesia and this fund aims to strengthen financial inclusion across the country," Radana Bhaskara Finance president director Evy Indahwaty said.
IFC has helped finance and mobilize more than $7.7 billion for private sector projects in Indonesia since 1968.