JAKARTA, Indonesia--(BUSINESS WIRE)--Citi Indonesia, the Overseas Private Investment Corporation (OPIC) and Bank Danamon announced the closing of a USD 20 Million term loan to fund the growth of Bank Danamon’s Microfinance program, Danamon Simpan Pinjam (DSP), and to promote the financial inclusion of microentrepreneurs and small businesses in Indonesia. This loan will be the first from Citi and OPIC for the microfinance sector in Indonesia, and is a part of Citi’s and OPIC’s $250 million joint global initiative to support microfinance lending in emerging markets worldwide.
“Microfinance has tremendous potential not only to help tackle unemployment and promote financial access in Indonesia, but also as one of the engines of the country’s economic growth,” says Kunardy Lie, Head of Global Banking Citi Indonesia. “This loan shows the continuation of our commitment to Indonesia economy. Through Danamon Simpan Pinjam, which focuses on small traders, micro-entrepreneurs and the value chain for entire businesses [that has a wise and prudent regulatory structure], we are confident that it will come to a progressive programme that enables small businesses in Indonesia to grow further,” he added.
“Indonesia has been a leading center for microfinance for decades, and the scale and diversity of its contribution to financial inclusion is evidenced by the expansion of Danamon Simpan Pinjam’s program supported by this facility,” said Bob Annibale, Citi’s Global Director of Microfinance.
“Indonesia – the site of OPIC’s most recent international investment conference, in May – is a priority country for OPIC and a nation poised for significant economic growth in the coming years. Enabling microentrepreneurs to play an important part in that growth will ensure that Indonesia has a strong foundation for its economy. With that goal in mind, we are pleased to work with our partners at Citi and Danamon to support the growth of microfinance in Indonesia,” said OPIC President and CEO Elizabeth Littlefield.
“This loan will strengthen our commitment in accelerating expansion in micro financing through Danamon Simpan Pinjam business, and to pursue our vision to ‘enable millions to prosper’. This year, we will open around 157 new DSP’s outlets across Indonesia to establish total of more than 1,200 DSP’s outlets, to better serve our customers and further provide financial access to the society, particularly our potential customers who live surrounding the traditional markets,” said Minhari Handikusuma, Danamon’s Director for Micro Business.
“We welcome the cooperation with OPIC and Citi Indonesia today, and are proud to be the first bank received the micro-finance loan backed by OPIC in Indonesia since 1997,” said Pradip Chhadva, Danamon’s Director for Treasury, Capital Market & Financial Institutions and Transaction Banking.
About Citi
Citi, the leading global financial services company, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Through Citicorp and Citi Holdings, Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management. Additional information may be found at www.citigroup.com or www.citi.com.
About Citi Microfinance
Working across Citi’s businesses, product groups and geographies, Citi Microfinance serves more than 100 microfinance institutions (MFIs), networks and investors as clients and partners in over 40 countries with products and services spanning the financial spectrum – from financing, access to capital markets, transaction services and hedging foreign exchange risk, to credit, savings, remittances and insurance products - to expand access to financial services for the underserved. www.citi.com/citi/microfinance
About OPIC
OPIC was established as an agency of the U.S. government in 1971. It helps U.S. businesses invest overseas, fosters economic development in new and emerging markets, complements the private sector in managing risks associated with foreign direct investment, and supports U.S. foreign policy. Over the agency's 38-year history, OPIC has supported $188 billion worth of investments that have helped developing countries to generate over 830,000 host-country jobs. OPIC projects have also generated $72 billion in U.S. exports and supported more than 273,000 American jobs. Visit OPIC on the web at www.opic.gov.
About Danamon:
PT Bank Danamon Indonesia Tbk. was established in 1956 and as of June 30, 2011 operates over 2,300 branches and points of sales, including its Danamon Simpan Pinjam (DSP) and Syariah units as well as its subsidiaries branches. As of June 30, 2011 Danamon provides its customers with access to over 25,000 ATMs, including through its association with ATM Bersama and ALTO, in all 33 provinces in Indonesia and supported by approximately 59,411 permanent and non permanent employees (including subsidiaries).
Recently, Danamon was awarded “The Best Performance Bank” in ABFI Banking Award 2011 held by ABFI Institute PERBANAS, under category of Private Banks with assets above Rp 40 trillion. The Bank also received “The Best of Indonesia Service to Care Champion Award 2011” under the category “Conventional Bank with Assets above Rp 65 Trillion” from MarkPlus Insight and Marketeers Magazine.
From international institutions, Danamon was received “Gold Award 2011” under category of Best Core Banking System Initiative, in the Asian Banking & Finance Banking Retail Awards 2011, hosted by Asian Banking & Finance Magazine (ABF). The judges decided winners based on the nominees’ strategy, service or product based on innovation, effectiveness, and flexibility in facing changes and progressive opportunities (dynamism).
Previously Danamon received awards for Best Mobile Banking, Best SMS Banking, Best Internet Banking and was positioned among the “Top 10 Most Consistent Bank in Service Excellence” in the 2010 Banking Service Excellence Awards by InfoBank and Marketing Research Indonesia. The Bank also received recognition as one of the “Best Local Cash Management Banks in Indonesia” in the Asiamoney Cash Management Poll 2010 held by Asiamoney.
Danamon is the sole issuer and acquirer of American Express® cards in Indonesia under an independent operator agreement which allows it to issue American Express cards to individual and corporate clients. Danamon is also the only bank which provides services to local merchants who accept American Express Cards and for signing up new merchant partners in Indonesia.
One of the Danamon subsidiaries, PT Adira Dinamika Multi Finance Tbk (Adira), the automotive financing company, operates an extensive branch network in more than 260 cities in Indonesia.
As of June 30, 2011, Danamon was 67.37% owned by Asia Financial (Indonesia) Pte. Ltd., 5.75% by JPMCB-Franklin Templeton Inv. and 26.88% by the public.