In Indonesia
Nia Sarinastiti
Telephone: +62 21 5299 3001 x 3134
Email: nsarinastiti@ifc.org

In Hong Kong
Andrew Mak
Telephone: +852 2509 8110
Email: amak@ifc.org

In Washington, D.C.
Rob Wright
Telephone: + 1 202 473 7997
Email: rwright@ifc.org


Jakarta, November 30, 2006 - The International Finance Corporation, the private sector arm of the World Bank Group, today announced that it will provide a local currency loan of approximately 1.1 trillion rupiah (equivalent to $125 million) to PT Bank Internasional Indonesia Tbk.  The financing is expected to make available long-term local currency credit that will enable BII to increase the scale of its lending activities to small and medium enterprises.

“We are pleased to partner with BII in our efforts to provide greater funding opportunities to local small and medium enterprises.  By providing long-term local currency funding, we also hope to help BII enhance its asset and liability risk profile,” said Jyrki Koskelo, IFC’s Director for Global Financial Markets.  

“We welcome the partnership with IFC and their support toward our future business expansion, as well as improving our balance sheet’s maturity risk profile,” said Henry Ho, President Director of BII. “The SME and commercial segment, we believe, is the backbone of the Indonesian economy, and we are pleased that through this partnership our contribution to this sector will strengthen. This segment contributes around 33 percent of our total loans today, and it will remain a key focus for our business going forward,” said Henry Ho.

“The loan to BII is an important aspect of IFC’s efforts to support development of Indonesia’s small and medium enterprise sector through our clients.  The loan is also part of a broader commitment to increase IFC’s activities in Indonesia by offering competitive solutions for clients,” said German Vegarra, IFC’s Country Manager.

This agreement further strengthens IFC partnership with BII.  “I am delighted that our transactions with BII over the last two years make the bank one of IFC’s key partners in Indonesia,” added Vegarra.

IFC will provide BII with a rupiah-linked loan involving a swap to hedge currency fluctuations, thus helping mitigate foreign currency risks.  This feature will allow BII to fix the approximate amount in rupiah required to service the IFC loan, making the transaction equivalent to a rupiah loan.

About IFC

The International Finance Corporation, the private sector arm of the World Bank Group, is the largest multilateral provider of financing for private enterprise in developing countries. IFC finances private sector investments, mobilizes capital in international financial markets, facilitates trade, helps clients improve social and environmental sustainability, and provides technical assistance and advice to businesses and governments. From its founding in 1956 through FY06, IFC has committed more than $56 billion of its own funds for private sector investments in the developing world and mobilized an additional $25 billion in syndications for 3,531 companies in 140 developing countries. With the support of funding from donors, it has also provided more than $1 billion in technical assistance and advisory services. For more information, visit www.ifc.org.

About Bank Internasional Indonesia

PT Bank Internasional Indonesia Tbk is one of the largest banks in Indonesia, with over 230 branches and 700 ATMs across Indonesia, as well as a banking presence in Mauritius, Mumbai, and the Cayman Islands. As of September 2006, it had a total customer deposit base of IDR 35.0 trillion and IDR 49.2 trillion in assets. BII provides a full range of financial services through its branch offices and ATM network, as well as phone and Internet banking channels, and is listed on the Jakarta and Surabaya stock exchanges. BII provides products and services to midsize and commercial enterprises and individuals, including credit cards, mortgages, deposits, lending, and wealth management services. BII provides corporate clients with services in trade finance, cash management, lending, custody, and foreign exchange.  For more information, visit www.bii.co.id.