Jakarta. The International Finance Corporation — the World Bank's financing arm for the private sector — will provide $100 million in financing and microfinancing for mid-sized lender Bank Tabungan Pensiunan Nasional (BTPN), according to a statement released on Thursday (22/06).
BTPN will use the loan to provide more financing for micro, small and medium businesses, women entrepreneurs and low-income families.
The bank also wants to make microfinance products — savings, loans and money transfers — more readily available to low-income families, allowing them a better chance to improve their welfare.
"Our goal — through our continuous work with BTPN — is to support income growth and sustainability for millions of households in the country," Azam Khan, IFC country manager for Indonesia and Malaysia, said.
IFC has been providing loans to BTPN since 2009, supporting the bank's goal to serve pensioners, small business owners and low-income families through 930 outlets across Indonesia.
"Access to financing is a critical element in reducing poverty and increasing shared prosperity," Khan said.
IFC noted that only 39 percent of Indonesian adults have access to financing.
Besides providing the loan, IFC will also work together with BTPN to improve the quality of its products and services through training and giving more access to information and networking opportunities so the bank can maintain its existing micro, small and medium business customers and add new ones.
The lender and its subsidiaries have a total of Rp 93 trillion ($7 billion) in assets at the moment, up nearly 2 percent since a year ago.