Heaptalk, Jakarta — International Financial Corporation (IFC) partners with Korean KB Kookmin Card Co. (KBC) to launch US$150 million funds, aiming to support the SME and mobile financing growth in two Southeast Asia countries, covering Indonesia and Thailand.
In this financing disbursement, IFC will provide a USD100 million loan to PT KB Financial Multi Finance (KB FMF) in Indonesia and a USD50 million loan to KB J Capital Co. Ltd (KBJ), whereby KBC has a majority stake in these companies.
Responding to the investment, Managing Director of KB Kookmin Card, Moon Cheol Kang, conveyed, “As a multi-finance company, KB FMF is well positioned to develop their supply chain finance programs, specifically for smaller businesses, whereby financing gaps are the widest. In Thailand, this funding will send a positive signal, attracting funding and allowing KBJ to expand financing for mobile phones in the country’s underdeveloped regions,”
MSMEs play a central role in the Indonesian economy, employing 97% of the total workforce and contributing 61% of GDP, but are constrained by limited access to finance. Meanwhile, the supply chain finance market holds significant potential to support Indonesia’s MSMEs by equipping a pivotal tool to reach them across supply chains and give more flexibility on working capital management.
IFC’s funding will support MSMEs in the archipelago, primarily focusing on supply chain finance loans. In Thailand, IFC’s loan will allow KBJ to provide installment financing for mobile phones, mainly focusing on the nation’s less developed regions. Apart from providing financial access, IFC will bolster FMF and KBJ in amplifying their responsible finance frameworks, including aligning their current operations with international best practices and national customer protection regulations.
“Financial and digital inclusion underpin resilient and inclusive growth. IFC is working with KB FMF and KBJ to enable more small businesses and customers to access the funding and digital tools they need to grow and thrive,” IFC’s Regional Director for East Asia and the Pacific, Kim See Lim, affirmed.
