IFC, a member of the World Bank Group, has signed a Memorandum of Understanding with Sumitomo Mitsui Banking Corporation (SMBC) and Bank Tabungan Pensiunan Nasional (BTPN) to promote financial inclusion and green financing in Indonesia. The aim is to address gaps in economic growth, promote sustainability, and support one of the country’s key development goals of creating jobs.
The largest economy in Southeast Asia, Indonesia has charted an impressive economic growth and has the potential to become the seventh largest economy in the world by 2030. However, the role of micro, small and medium enterprises is crucial to achieve this target. While MSMEs account for 89 percent of the private sector workforce—and 60 percent of the country’s GDP—they remain largely untapped with limited or no access to finance.