First DEG financing in Indonesian rupiah
Press Release from 2019-10-07 / DEG
Up to 15 million euros for PT Trihamas Finance
Indonesia’s economy has grown steadily in the last few years. However, in addition to a shortage of infrastructure, local companies often lack long-term finance. This is where a loan from DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH comes in for the local company PT Trihamas Finance (Trihamas). Trihamas primarily finances commercial vehicles for small businesses. As its first international lender, DEG is providing Trihamas with up to 15 million euros of financing in Indonesian rupiah. The loan in local currency enables the Indonesian company to expand its activities while reducing foreign exchange risk.
Commercial vehicle finance for small businesses
Trihamas has focused on providing finance to small businesses to purchase commercial vehicles such as vans or minibuses since 2001. The company is now on course for growth with this niche business. The average loan size for the financed vehicles is equivalent to 5,000 USD.
Trihamas currently has 50 branches, most of which are on Indonesia’s most populated islands Java and Sumatra. The company also wins new customers by working with car dealers who make potential vehicle buyers aware of the financing option. Trihamas has made it possible for its 28,000 customers to buy a vehicle. The company wants to generate further growth not only through new branches, but also by developing online sales channels.
Contribution to market development and local income
“We are the first international financier to provide Trihamas with long-term capital, thus enabling our customer to grow. In addition, we are helping small businesses in Indonesia become more mobile and generate income for themselves and their families. Last but not least, we have further enhanced our local currency offering with this first financing in Indonesian rupiah”, said Monika Beck, member of DEG’s Management Board.
“For two decades we have been financing small enterprises to drive their business and create jobs in their communities. Now we are happy to start our partnership with a reputable international financial institution like DEG. DEG’s Rupiah loan accelerates the growth of Trihamas and the local entrepreneurs we support.” said Gerardus Kusmo, president director of Trihamas.
Trihamas currently has approximately 900 employees. The company contributes to market development and generates local income.
DEG has been active in Indonesia since 1972 and has had a representative office in Jakarta since 1988. It has financed investments in the local financial sector and in the manufacturing industry. Alongside Indonesia, DEG currently offers local currency loans in China, India, Mexico, the Philippines, South Africa and Turkey.