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IFC support to PT. KB Finansia multi finance to help Indonesian businesses, drive economic recovery [EN/ID]

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Jakarta, Indonesia, December 21, 2020—Micro, small and medium sized businesses (MSMEs), in Indonesia will benefit from a timely investment by IFC, a member of the World Bank Group, which aims to address liquidity issues in the nation's multi-finance sector given the COVID-19 pandemic. This will help preserve jobs, boost market resilience, and contribute to a sustainable and inclusive domestic economic recovery.

IFC will provide a loan of up to $50 million to PT. KB Finansia Multi Finance (KBFMF), a key player in Indonesia's multi-finance sector and backed by KB Kookmin Card, one of the largest specialized credit finance companies in South Korea. This loan will enable KBFMF to raise long-term IDR-denominated funding, diversify its funding base, and strengthen its balance sheet. It will further allow KBFMF to continue lending to micro, small, and medium enterprises (MSMEs), which employ 89 percent of the nation's workforce, thus driving the economy.

"We welcome IFC's support in these unprecedented times. This crucial investment will help us focus on our growth strategy, which includes plans to diversify our financial product offerings and digitize operations. Despite the economic challenges of a global pandemic, it will allow us to continue our lending program, sustaining and supporting the recovery of Indonesia's low-income households as well as micro, small, and medium enterprises," said Peter Halim, Director of PT. KB Finansia Multi Finance.

Multi-finance companies (MFCs)—the main source of funding for MSMEs operating at the bottom of the pyramid—are facing a liquidity squeeze because of the relaxed repayment requirement due to the pandemic. Moreover, banks have stopped or significantly reduced lending to MFCs, which unlike banks, do not have access to deposits or liquidity support from the central bank.

"Micro, small and medium sized businesses, an engine room of economic growth in Indonesia, has been hit hard by the COVID-19 pandemic and helping them recover will be key to stemming job losses and reigniting economic activity," said Azam Khan, IFC's Country Manager for Indonesia, Malaysia and Timor-Leste. "Given the devastating impact of the pandemic, IFC's funding aims to support the country's efforts to build back better for a more inclusive and resilient future."

This investment—in line with the World Bank Group and IFC's priorities in Indonesia—aims to ensure that MSMEs in the country are sustainable by addressing their liquidity issues during the pandemic. It also aligns with the Indonesian Financial Services Authority policy, which acknowledges the critical role that MFCs play in providing finance to companies at the bottom of the pyramid.

About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2020, we invested $22 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit

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About FMF
Established in 1994, KBFMF is a leading player in the multi-finance sector in Indonesia with over 10,000 employees as part of its operations. KBFMF enjoys a unique market position of providing loans for Used Motorcycle refinancing, Used Car refinancing and Digital Electronics & Appliances financing through both online and offline channels. KBFMF proprietary distribution network spanned across Indonesia with 230 branches / POS outlets. KBFMF has access to its own proprietary customer base of over 3 million customers of which over 570,000 customers are active.

As of November 2020, KBFMF had recorded Managed Receivables and New Bookings of IDR3,114 billion and IDR2,914 billion, respectively.


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