In Washington, D.C.:
Rita Jupe
Phone: +1 (202) 458 8967
Email: rjupe@ifc.org

In Indonesia:
Alex Tandun
Phone: +62 5299 3001
Email: atandun@ifc.org

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


Jakarta, July 6, 2006 - The International Finance Corporation, the private sector arm of the World Bank Group, today announced the provision of a long-term loan of up to IDR186 billion  (or equivalent of $20 million) to PT Wahana Ottomitra Multiartha Tbk (WOM Finance).  Through this transaction IFC will help WOM meet the financing needs of small businesses and low income individuals, segments of the market that are generally underserved by the financial sector in Indonesia.

Funds will be used to provide loans to small-and medium-sized enterprises and low income individuals for purchasing motorcycles, which are relied upon in Indonesia for crucial business-related and personal transportation. IFC will provide WOM Finance with a 5-year rupiah loan where the client has the option to draw in rupiah or in dollars with repayments linked to the rupiah/ dollar exchange rate at the time of payment. This local currency financing instrument will enable the client to borrow and protect itself from currency fluctuations.

“IFC is committed to providing clients with the type of financing that best meets their needs, especially through local currency facilities,” said IFC Director of Global Financial Markets Jyrki Koskelo. “We are looking for additional ways to collaborate with WOM, including building its capacity to tap securitization markets when these become viable financing sources in Indonesia.”

The loan highlights IFC’s commitment to Indonesia by offering competitive solutions for its clients when their goals match IFC’s priorities to promote sustainable development. The structure of the loan demonstrates that IFC can offer innovative solutions and large scale lending that is required today in financial and capital intensive sectors, such as building materials, infrastructure and manufacturing. Along with the loan IFC is also helping WOM improve its business processes so that it can serve its customers through standardized operating procedures.

“This loan marks an important step in supporting the growth of small-and medium-sized businesses in Indonesia,” said IFC Indonesia Country Manager German Vegara. “By financing WOM we can increase opportunities for these types of businesses to access finance for their transportation needs.” Motorcycles are the main personal and business transportation for low-income groups in Indonesia. The majority of motorcycle owners use their vehicles for business purposes to deliver goods and services

“We are delighted to be working with IFC and this is the first loan we have received from an international institution,” said Benny Wennas, President Director of WOM Finance. “With more than 90 branches in Java, Sumatra, Bali, Kalimantan and Sulawesi, WOM is ideally positioned to serve the motorcyle financing needs of small-and medium-sized enterprises and low income individuals across the country.”

IFC owns 19 percent of WOM Finance together with Bank International Indonesia (43 percent) and DBS (5 percent). WOM’s founders maintain a 15 percent stake, while the public owns 18 percent.

About IFC:
The mission of IFC (www.ifc.org) is to promote sustainable private sector investment in developing and transition countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY05, IFC has committed more than $49 billion of its own funds and arranged $24 billion in syndications for 3,319 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY05 was $19.3 billion for its own account and $5.3 billion held for participants in loan syndications.