Heaptalk, Jakarta — PT Home Credit Indonesia bags new strategic funds worth US$100 million, approximately Rp1.5 trillion, from the Jakarta-based unit of MUFG Bank. The fresh injection will be fully allocated to amplify Home Credit’s sustainability intention through Environment, Social, and Governance (ESG)-based financing.
Following this strategic fund, the Director of Home Credit Indonesia, Volker Giebitz, admitted that this funding is expected to support the company’s objective to enhance financial inclusion and economic empowerment of women’s groups while also improving the digital inclusion, specifically financing access for the digital devices, spanning smartphone and tablet.
“This collaboration will further strengthen Home Credit’s commitment to the ESG principles that have been embedded in the company since its establishment in the archipelago in 2013,” added Giebitz.
This collaboration is Home Credit’s first strategic move with MUFG following the completion of the company acquisition process by the MUFG consortium led by Krungsri Bank and Adira Finance in early October 2023. In this strategic acquisition, Home Credit Indonesia shares have been purchased by Krungsri (75%), Adira (10%), and local partners (15%), with a total valuation of US$229 million, equal to Rp3.4 trillion.
Through this early financial facility, the Managing Director and Head of Corporate Investment Banking and Product for Indonesia at MUFG Bank, Yuki Hayashi, claimed the company aims to expedite the country’s financial inclusion. By purchasing a mobile device for the first time, he observed that people have access to the internet, expecting to gain new opportunities to grow their businesses.
Besides providing smartphone and tablet devices, Home Credit will use the fund to grant other financing assistance, including furniture, laptops, electronic tools, and car accessories. Also, this fintech company will provide cash financing, pay later, e-wallet, and protection.
“Collaboration in this ecosystem is in line with MUFG’s commitment to channel a cumulative total of JP¥35 (around Rp3,775 trillion) into sustainability-related financing globally by 2030,” added Yuki.
