Indosurya Finance Gets 50 Million Euros to Support SMEs
Indonesian multi-finance company Indosurya Inti Finance today announced that it has managed to raise 50 million Euros worth of funding credit facilities. The money has been raised from two globally renowned institutions; the Netherlands-based FMO and Proparco, From France. However, the important bit about the development is that the money is going to be used to finance a wide range of small and medium enterprises in Indonesia.
Indosurya is going to be involved in providing SMEs in Indonesia with working capital loans. Additionally, it will also provide those businesses with Indosurya products that could improve business operations. On the other hand, it should also be noted that finance companies in Indonesia are currently going through liquidity issues. The fact that Indosurya managed to get a credit facility from two renowned institutions is an indictment of its capabilities as a business.
Both FMO and Proparco have been long term advocates of financing SMEs in developing countries. The SME sector is one of the most important constituents of the Indonesian economy and contributes as much as 57% to Indonesia’s annual GDP. Due to this credit facility, Indosurya will now be able to provide financing support to as many as 400 SMEs in the country.
Indosurya Finance’s CEO, Henry Surya, spoke about the company’s targets with regards to its SME push. He said,
“Our target for channeling financing for SME entrepreneurs in Indonesia through these credit facilities must be achieved within one to one-and-a-half years.”
It is a significant development, and it remains to be seen how the finance company boosts the SME businesses in the country.