34806 - Kartuku

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Summary of Investment Information

Project Number

34806

Company Name

MULTI ADIPRAKARSA MANUNGGAL, PT

Date SPI Disclosed

Nov 19, 2014

Country

Indonesia

Region

East Asia and the Pacific

Projected Board Date

Dec 22, 2014

Environmental Category

C - No Impact

Status

Hold

Last Updated Date

Nov 30, 2016

Department

Equity Portfolio Management

Industry

Financial Markets

Previous Events

Approved : Jan 7, 2015

Sector

Retail Payment Points

Project Description

PT Multi Adiprakarsa Manunggal (Kartuku or the Company) is an Indonesian payments services provider/payments processor established in 2001. Kartuku is one of the first companies in Indonesia to successfully integrate the country’s major banks and large retailers into a fully integrated end-to-end payment network infrastructure.

IFC is considering an equity and debt investment in the Company to support the expansion of the business in Indonesia (the Project).

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management	5.0
Guarantee
Loan	10.0
Equity	10.0

Development Impact

1. Driving Financial Inclusion: Indonesia''s GDP has shown healthy growth in the past few years but with only 50-60 million Indonesians having access to financial services out of a total population of 250 million, there is a strong need for development of a wide payments network in Indonesia. IFC''s investment in Kartuku would would make financial services available at a low cost to a large part of the Indonesian population currently not served by banks and other financial services companies. In addition, Kartuku''s new service lines such as mPoS are expected to boost digital payments among MSMEs and merchants.

2. Financial Infrastructure: With their expansion, Kartuku will contribute significantly in improving the modern electronic payment infrastructure of Indonesia.

3. Private Sector Development: The Project will help to create a leading Indonesia payment services provider in Indonesia. Launch of internet payment and cash collection will help the growing e-commerce industry.

1) Global expertise and presence: Kartuku values IFC as one of the leading investors in the payments/fintech sector. Kartuku will benefit from IFC''s global expertise and knowledge in the payment sector, which will become increasingly important when the Company expands its service offerings and increased regulatory requirements as a result.
2) Mobilize long term financing: Significant long-term financing for relatively new payments/fintech companies such as Kartuku is not available in Indonesia. IFC will act as the anchor lender in helping Kartuku to raise long-term financing from banks and DFIs.
3) Stamp of Approval: An involvement from IFC would help the company to improve corporate governance in preparation for an eventual IPO or trade sale. It would also enhance visibility and recognition, which is critical for gaining the trust of potential partners including financial institutions and large retailers.

E&S Category Rationale / Risks and Mitigation

Kartuku is expected not to own or construct any infrastructure or to commission the manufacture of any equipment. So the key environmental and social (E&S) issues in this Project are expected to be in the working conditions of employees and contractors, where E&S risk is expected to be low. As a result, the Project is classified as Category C, according to IFC’s environmental and social review procedures.

Contacts

For Inquiries About the Project, Contact

Antoine de Carbonnel
PT. Multi Adiprakarsa Manunggal
Setiabudi 2 Building, 3rd Floor, Suite 302 - 305
Jl. HR Rasuna Said Kav 62, Kuningan
Jakarta 12920. Indonesia
Telephone: +62-21-2991-5699
Fax: +62-21-5290-3064
http://www.kartuku.com

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IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

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Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

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Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

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CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. Its purpose is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

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