Istanbul, Turkey, 4th October 2009 - IFC, a member of the World Bank, has agreed to provide funds in Rupiah equivalent to USD 70 million for PT Bank Tabungan Pensiunan Nasional Tbk (BTPN), to be used by the lender to provide financial services to more than one million people of low income as well as micro & small enterprises (MSEs).

IFC's financing package consists of loans totaling USD 15.9 million which will be converted into shares and USD 54.1 million of Senior Loan. As part of the deal, IFC will also help BTPN raise funding in the next three years.

BTPN has tapped into the Micro & Small Enterprises market in November 2008, and now serves about 70,000 customers, most of which are small traders and traders who run kiosks in traditional markets. To facilitate MSEs, the Bank plans to expand its network to reach 550 outlets by the end of 2009. The funding support from IFC will enable BTPN to offer financial services to more customers throughout Indonesia.

Commenting on such cooperation, Rashad Kaldany, IFC Vice President for East and South Asia remarked, "We warmly welcome the cooperation with BTPN. This strategic investment reflects our ongoing commitment to build the capacity of leading financial institutions in Indonesia, to help them provide better service for the micro, small and medium enterprises, as well as low-income households." Kaldany further stated that IFC's support for BTPN will expand the financing access and create more opportunities for indigent members of the community to improve their living standard.

Dr. Fuad Rachmany, Chairman of Indonesian Capital Market and Financial Institutions Supervisory Board (Bapepam LK), who represent Indonesian Minister of Finance in the annual meeting of the IMF and Worldbank Group, witnessed the signing of the agreement between IFC and BTPN. In that occasion, Dr. Fuad declared, "Indonesian Government always encourages the financial and banking institutions to open the widest access of financing for MSEs. Therefore, we greatly appreciate this effort of IFC and BTPN".
 
"We are pleased with the strategic partnership between IFC and BTPN. This cooperation will provide an alternative of long-term funding for BTPN, in addition to the bond financing launched last September," said Jerry Ng, President Director of BTPN. "We regard this partnership as an important milestone for BTPN, because it reflects the commitment of BTPN and IFC to provide bigger financing access for MSEs dan pensioners. Indeed, it indirectly represents the concrete contribution to the development of Indonesian economy. We would also like to express our appreciation to Dr. Fuad Rachmany for attending this special event."

Micro-financing plays a crucial role in the fight against poverty. The access to various microfinance services such as savings, loans and money transfers provide the opportunity for poor families to invest in micro-enterprises and improve their living condition, health, and education for their children. IFC provides advice and investments to the microfinance sector of developing countries by focusing on strong micro finance institutions, which will continue to grow and meet the market needs.

About IFC 
IFC, a subsidiary of the World Bank Group, provides opportunities for people to escape from poverty and improve their living standard. IFC strives to encourage sustainable economic growth in developing countries by giving financing to the private sector, mobilizing private capital, and providing technical assistance and risk mitigation for companies and governments. For the fiscal year of 2009, IFC's total investment totaling USD 16.2 billion helped to channel financing to developing countries during the financial crisis. For more information, visit www.ifc.org.

About PT Bank Tabungan Pensiunan Nasional Tbk
PT Bank Tabungan Pensiunan Nasional Tbk (BTPN) is a medium scale listed bank founded in 1958. It focuses on the mass market segment, especially micro & small enterprises and pensioners, and operates a network of more than 800 offices throughout Indonesia.

As of September 2009, the Bank's assets totaled Rp 18.2 trillion, with a very strong CAR of 23.3%, and the lowest NPL in the banking industry (0.55% gross). BTPN is well-known as a reputable medium scale listed bank, and is now one of the best financially performing bank with the rating of A + Positive Outlook issued by Fitch Ratings.

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