43291 - Pasarpolis

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Summary of Investment Information

Project Number

43291

Company Name

PT PASARPOLIS INDONESIA

Date SPI Disclosed

May 5, 2020

Country

Indonesia

Region

East Asia and the Pacific

Projected Board Date

Jun 8, 2020

Environmental Category

FI-3 - No Impact

Status

Active

Last Updated Date

Aug 6, 2021

Department

Global Industry, Financial Markets

Industry

Financial Markets

Previous Events

Approved : Jun 15, 2020
Signed : Dec 19, 2020
Invested : Jan 7, 2021

Sector

General Insurance (Non-Life)

Project Description

IFC is considering an equity investment in Pasarpolis, an early stage insurtech company in Indonesia offering micro and modular insurance products. Pasarpolis serves as an infrastructure platform connecting insurance companies, digital ecosystem partners and end customers.

Sponsor / Cost / Location

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

Development Impact

The most significant expected Project outcomes are: (1) Improved access to insurance for digital economy participants - E-commerce is expanding rapidly in Indonesia. As firms, increasingly MSMEs, onboard onto e-commerce platforms, they not only gain access to a much larger market but are also able to access a broad range of services linked to marketing, logistics, payment services and financing. Access to e-commerce and its ancillary services can help MSMEs boost productivity and grow, while expanding access to goods and services for consumers. This investment will help Pasarpolis to expand its coverage of risks related to e-commerce, covering risks that are essential for the development of Indonesia's digital economy and helping businesses and consumers safely and confidently transact online. (2) Access to more affordable and higher quality motor insurance - Indonesia does not have mandatory third-party motor insurance and is one of the world's least penetrated markets for motor insurance. As ride-hailing services grow rapidly in Indonesia, Pasarpolis has partnered with GoJek to embed basic third-party liability protection and coverage for drivers and passengers, and also offers additional policies for more extensive protection for drivers and their vehicles. This investment will help Pasarpolis to continue to grow its capacity to provide coverage for ride-hailing drivers and passengers, and also develop other kinds of insurance for owners and users of vehicles beyond the ride-hailing sector.

As an investor with a strong footprint in financial technology and insurance across emerging markets, IFC is providing financial additionality by investing IFC's own account equity in an early-stage insurtech provider, and non-financial additionality in the form of knowledge, innovation and capacity building by providing its unique emerging market insurance expertise to the company.

E&S Category Rationale / Risks and Mitigation

The proposed project entails an IFC equity investment of up to US$ 5 million in PT Pasarpolis Indonesia (“Pasarpolis”) which is an insurtech company based in Indonesia offering retail micro and modular insurance products in Indonesia. The project has been categorized as FI-3 in accordance with IFC Sustainability Policy as the purpose of the proposed investment is to support Pasarpolis’ operations which have low E&S risks. The project will not support any commercial or industrial activities, coal-related activities and higher risk business activities that may include a) involuntary resettlement, b) risk of adverse impacts on Indigenous Peoples, c) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage, or d) significant Occupational Health and Safety risks. Pasarpolis’ own HR practices are broadly in line with the objectives of IFC Performance Standard 2 Labor and Working Conditions. The company will be required to formalize current HR practices in an employee handbook in each of the countries of operation and ensure there is a functioning grievance mechanism in place for its own operations.

Given the E&S risk nature of this project, development of a robust ESMS was not needed.

Contacts

For Inquiries About the Project, Contact

PT Pasarpolis Indonesia
Cleosent Randing
CEO
(+62) 3044 8080
cs@pasarpolis.com
Gedung Tifa, J1, Kuningan Barat 1 No.26, RT.6/RW.1 West Kuningan, Mampang Prapatan, South Jakarta
www.pasarpolis.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.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

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. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII 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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