Baar-Zug, Switzerland, February 9, 2022
Blue Earth Capital (“BlueEarth”) has committed USD 10 million to PT Trihamas Finance (“Trihamas” or the “Company”). Our funding will help support thousands of underserved SMEs in Indonesia through affordable asset-backed vehicle financing solutions.
Inadequate access to credit is one of the key constraints to growth for SMEs in Indonesia, which account for ~99% of businesses, employ ~97% of the workforce and contribute to ~60% of GDP. While 99% of Indonesian SMEs are micro-enterprises, only ~1% of them manage to grow to a sustainable SME size, primarily due to limited capacity to scale and to access credit. Lack of access to credit in this segment triggers a significant cost to the broader economy, as it limits business expansion and job creation, and acts as a bottleneck to improving efficiencies: the lost opportunity is estimated to be ~USD 130bn (~14% of GDP).
Trihamas, headquartered in Jakarta, is a regulated multi-finance institution specializing in used vehicle financing in Indonesia. The Company provides financing for SMEs and individuals to purchase income-generating productive motor vehicles across various sectors, including trade, transportation, agriculture, and construction. Trihamas caters to underserved rural and semi-urban SMEs and individuals with limited access to financing. 82% of Trihamas’ clients are rural borrowers and 71% are SMEs with an average of 3 employees. The Company uses a proprietary credit underwriting model tailored to smaller SMEs and low-income individuals with limited credit history and less formal income sources. All loans are secured with the underlying vehicles.
Thanks to Trihamas’s affordable asset-backed financing solutions, their clients can invest capital in expansion and improvement of operations that support increased market access, productivity, and job creation. A large proportion of Trihamas’ clients are engaged in essential businesses, such as logistics and supply chain, and play a vital role in the economy.
Amy Wang, Head of Private Debt of Blue Earth Capital, comments: “We are pleased to partner with Trihamas on their journey to advance mobility and long-term economic growth for Indonesian small businesses. We look forward to supporting the Company’s continued growth during these challenging times.”
Gerardus D. Kusmo, President of Trihamas, comments: “Blue Earth Capital’s loan to Trihamas Finance will be used to support the company’s financing business for productive sectors as the main support for the financing business. It is hoped that this collaboration can bring sustainable economic benefits to debtors and the surrounding environment. The loan facility received is a form of creditors’ trust in the company, in distributing financing during the COVID-19 pandemic period, where the challenges faced are still quite heavy. The company, in the midst of a difficult situation, was able to maintain good performance, especially maintaining the quality of its financing portfolio and being able to fulfill all obligations to creditors.”
About PT. Trihamas Finance
Founded in 1994 and headquartered in Jakarta, Pt. Trihamas Finance is a regulated multi-finance institution specializing in used vehicle financing in Indonesia. The company provides financing for SMEs and individuals to purchase trucks, busses, and cars across various sectors, including trade, transportation, agriculture, and construction. All loans are secured with the underlying vehicles. Trihamas uses a proprietary credit underwriting model tailored to smaller SMEs and low-income individuals with limited credit history and less formal income sources.
Leading position in the underserved used vehicle financing market with a focus on sub-scale SMEs and low- and middle-income clients underpins Trihamas’ competitive advantage. The Company contributes to the national economy by accelerating the growth of the financing portfolio.
About Blue Earth Capital
Blue Earth Capital is an independent global impact investment firm, headquartered in Baar-Zug, Switzerland with operations in New York, London and Singapore. It manages investment strategies for an international clientele of professional investors who are seeking investment solutions that offer market-rate returns, while also helping to address pressing social or environmental challenges.
Initiated in 2015 by Urs Wietlisbach and backed by the Ursimone Wietlisbach Foundation, Blue Earth Capital has been incubated and built-up with the support of Partners Group, leveraging its experience as a leading global private markets firm.
Blue Earth Capital is fully owned by Blue Earth Foundation, a Swiss not-for-profit organization which protects the impact mission of Blue Earth Capital and re-invests 100% of the firm’s operating profits in support of its philanthropic activities.
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