IFC Supports Green Retail, Tourism, and Property Projects in Indonesia with $275 Million Loan to Trans Corp

Friday, 9 April 2021 | 15:33 WIB

Jakarta, Indonesia, February 18, 2019 —IFC, a member of the World Bank Group, and PT CT Corpora (CT Corp) today announced their first investment transaction together, in which IFC is providing a loan package of $275 million to PT Trans Corpora (Trans Corp), a wholly owned subsidiary of CT Corp. The aim is to support the growth of its retail, tourism, and property operations across the country.

IFC’s investment will help Trans Corp add new retail stores across 25 cities by 2025. This will subsequently boost the growth of modern retail infrastructure across the country and improve consumers’ access to a range of quality products. It will further develop local supply chains, involving a larger base of local suppliers and Small and Medium Enterprises (SMEs).

Trans Corp’s expansion of its retail operations is expected to create over 30,000 new jobs in Indonesia. In addition, working with over 6,000 suppliers—nearly 70 percent are SMEs—around 23,000 indirect jobs will be created in areas such as farming and distribution.

“We are honored to partner with a global player like IFC with extensive global experiences, extensive networks, and knowledge. IFC’s support will help us expand and serve a growing number of customers with innovative products and services, while also investing in their future by adopting more sustainable business practices,” said Chairul Tanjung, CT Corp Chairman.

In line with the government of Indonesia’s strategic priority to develop the country’s tourism sector supported by a World Bank loan of $300 million, IFC’s investment will also help Trans Corp expand its tourism operations. In addition to its existing properties, the Group has an agreement with Accor, a global hospitality company, to develop 30 new hotels, adding nearly 6,000 new rooms across the country.

Further, addressing the needs of the middle-income population as well as the country’s housing deficit, Trans Corp is developing more than 10,000 affordable apartments across multiple locations.

Trans Corp is also committed to promoting resource efficient buildings—worth at least $275 million—that meet IFC’s EDGE (Excellence in Design for Greater Efficiencies) Green Building standard. The buildings sector is Indonesia’s third-largest final energy consumer and accounts for approximately 27 percent of total final energy consumption. If left unmitigated, buildings are likely to consume nearly 39 percent of total energy by 2030. “IFC is delighted to engage with a leading Indonesian Group like CT Corp. This financing package aims to maximize Indonesia’s private sector-led development, and support one of its key goals of creating jobs,” said Nena Stoiljkovic, IFC’s Regional Vice President for Asia & Pacific. She added, “By embracing innovation and inviting private sector investment, Indonesia can boost economic growth through a pipeline of sustainable and diverse projects.” IFC’s partnership with CT Corp began with a Memorandum of Understanding signed by Philippe Le Houerou, CEO of IFC and Chairul Tanjung in October 2018.

About IFC

IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In fiscal year 2018, we delivered more than $23 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org

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About CT Corp and Trans Corp

CT Corp is Indonesia’s leading integrated consumer-focused holding company, which includes two key group entities: PT Mega Corpora (Mega Corp) and Trans Corp. Mega Corp holds the Group’s financial sevices operations and is committed to becoming a one-stop provider with services including banking, insurance, capital markets and consumer financing. Trans Corp holds the Group’s, media, retail, lifestyle, entertainment and property business. It has established strongly-positioned brands in the consumer market, including Carrefour and TRANSmart, Indonesia’s largest hypermarket player; Trans TV and Trans 7, two leading free-to-air channels; and Detik.com, the #1 online news portal in Indonesia. For more information, please visit www.ctcorpora.com