IFC Invests US$150M to Propel MSME Growth in Indonesia, Thailand

IFC Invests US$150M to Propel MSME Growth in Indonesia, Thailand

by April 30, 2024

The International Finance Corporation (IFC) has partnered with KB Kookmin Card (KBC), a South Korean credit card issuer, to enhance financial access for small businesses in Indonesia and promote digital inclusion in Thailand.

The financing agreement allocates a total of US$150 million in loans to subsidiaries of KBC operating in the two countries, comprising approximately US$100 million in Indonesian rupiah to PT KB Finansia Multi Finance (KB FMF) and US$50 million in Thai baht to KB J Capital (KBJ).

In Indonesia, the IFC funding aims to support micro, small, and medium enterprises (MSMEs) with a focus on supply chain finance loans.

Meanwhile, in Thailand, the IFC loan will enable KBJ to provide installment financing for mobile phones, particularly targeting the less developed regions.

This move builds on IFC’s prior support to KB FMF during the COVID-19 pandemic. The initiative also includes measures to strengthen the responsible finance frameworks of KB FMF and KBJ, aligning their operations with international best practices and national customer protection regulations.

“IFC’s investment will allow both KB FMF and KBJ to support the underserved segments in Indonesia and Thailand, respectively. As a multi-finance company, KB FMF is well positioned to develop their supply chain finance programs, especially for smaller businesses, where financing gaps are the widest.

 

In Thailand, IFC’s funding will send a positive signal, attracting funding and allowing KBJ to expand financing for mobile phones in the country’s underdeveloped regions.”

said Moon Cheol KANG, Managing Director of KB Kookmin Card.

Kim-See Lim

Kim-See Lim

“Financial and digital inclusion underpin resilient and inclusive growth.

 

IFC is working with KB FMF and KBJ to enable more small businesses and consumers to access the funding and digital tools they need to grow and thrive,”

said Kim-See Lim, IFC’s Regional Director for East Asia and the Pacific.

 

Featured image: Edited from Wikipedia