Bank DBS Indonesia has announced the launch of a new funding initiative aimed at supporting small and medium enterprises (SMEs) with a social impact. The bank has allocated SGD2 million, approximately Rp24 billion, under a blended finance scheme that does not require collateral. This move addresses the financing challenges faced by many of Indonesia's 65 million micro, small, and medium enterprises (MSMEs), as highlighted by October 2024 data from the Government Investment Center.
Adena Coffee, a social enterprise focusing on sustainable coffee production, is the first recipient of this blended finance scheme. The company plans to use the funds to enhance its operations and expand its positive impact on local communities. Adena Coffee had previously received support from the DBS Foundation Grant Programme in 2024.
Angela Thenaria, Executive Director and Head of SME Banking at PT Bank DBS Indonesia, explained the purpose behind this initiative: “As a purpose-driven bank, Bank DBS Indonesia presents a blended finance scheme - a mix of grants and soft loans - to address the financing gap that often hinders the growth of social enterprises in the country.”
The blended finance scheme involves a thorough selection process and ongoing monitoring to ensure transparency and accountability. Mona Monika, Head of Group Strategic Marketing & Communications at PT Bank DBS Indonesia, emphasized their commitment to supporting social entrepreneurs like Adena Coffee: “Bank DBS Indonesia fully supports social entrepreneurs like Adena Coffee to empower local economies and communities because we believe that business is not only about profit but also about creating impact on the environment and society.”
Abyatar, Founder and CEO of Adena Coffee, expressed gratitude for being chosen as the first beneficiary: “We feel honoured by the trust placed by Bank DBS Indonesia in us as the first social enterprise to receive support through this blended finance scheme.”
Adena Coffee aims to further develop sustainable coffee farming practices in Indonesia. The country produces around 789,000 tons of coffee annually and ranks as one of the world's top producers. Abyatar noted that most Indonesian coffee is produced by smallholder families rather than corporations.
With increased funding from Bank DBS Indonesia's blended finance scheme, Adena Coffee plans several initiatives including developing software for compliance with European Union regulations on deforestation, establishing training centers for farmers, building new facilities for wet processing methods, and conducting capacity-building sessions for farmers across various regions.
DBS Foundation has been active since 2014 in supporting social programs across Asia. It has allocated over SGD130 million towards impactful businesses in key markets including Indonesia. The foundation focuses on promoting inclusion within vulnerable communities while reinforcing commitments towards environmental sustainability.
For more information about DBS Foundation activities or grant programs visit dbs.com/foundation/grants or follow them on Instagram @dbsfoundationid.