Washington, August 6, 2026 — The Multilateral Investment Guarantee Agency (MIGA), home of the World Bank Group Guarantee Platform, has issued guarantees to HSBC to support a loan to Bank Mandiri, Indonesia’s largest state-owned commercial bank, increasing access to finance for micro, small, and medium enterprises (MSMEs) while creating and protecting jobs across the country.
The two guarantees cover a $750 million loan to be disbursed in two tranches, proceeds from which will be channeled through Bank Mandiri's nationwide network to MSMEs under Indonesia's flagship Kredit Usaha Rakyat (People's Business Credit) program. Proceeds will strengthen the bank’s capacity to finance and refinance loans to retail trade and service businesses, street vendors, food crops and aquaculture enterprises supporting the livelihoods and everyday needs of Indonesians across the country.
MSMEs are the backbone of Indonesia's economy, contributing approximately 60 percent of GDP and 97 percent of total employment. MSME lending, however, represents 18.5 percent of total bank credit in the country. Women entrepreneurs are at the heart of this opportunity. They own or manage an estimated 65 percent of Indonesia's MSMEs, making greater access to formal credit a powerful lever for broad-based prosperity. Bank Mandiri has committed to a Gender Action Plan to track and expand lending to women-owned businesses, supported by advisory services from MIGA and the International Finance Corporation (IFC), a member of the World Bank Group and the largest global development institution focused on the private sector in emerging markets.
This transaction is part of a coordinated World Bank Group approach to improve financial inclusion for MSMEs in Indonesia. The International Bank for Reconstruction and Development is supporting the enabling environment for MSME finance through policy-based engagement and analytical work on financial inclusion and digital finance and expanding MSME credit as a percentage of total credit, among other areas. IFC is deepening institutional capacity and market offerings for MSME and women-focused lending through investments and advisory engagements with financial institutions and fintech platforms.
"This transaction marks a significant milestone for Bank Mandiri and underscores the confidence of the international financial community in Indonesia's economic fundamentals and the strength of our institution," said Ari Rizaldi, Director of Treasury & International Banking, Bank Mandiri. "As we continue to broaden and diversify our funding base to ensure the resilience and sustainability of our balance sheet, this $750 million social loan, funded by HSBC and guaranteed by MIGA, represents a compelling example of how multilateral-backed structures can unlock competitive international funding at scale. We are proud to bring this alternative source of long-term financing to bear in support of Indonesia's MSMEs, the engine of our nation's growth, while reinforcing our long-standing commitment to sustainable and inclusive finance,"
"Indonesia's MSMEs account for virtually all the country's employment and over half its GDP, but the finance they need to grow remains out of reach for far too many, especially women, who own or manage more than half the country's smaller businesses," said MIGA Managing Director Tsutomu Yamamoto. "We’re excited to partner with Bank Mandiri and HSBC on this impactful transaction, which also marks MIGA's first financial sector guarantee in the country.”
“We’re proud to partner with MIGA in supporting Bank Mandiri with this landmark $750 million, three-year social loan," said Stuart Rogers, President Director, HSBC Indonesia. "This structure helps unlock sizable alternative international funding at competitive terms and channel it into financing for Indonesia’s MSMEs, including more women-owned and women-led microenterprises, so they can grow, create jobs and drive Indonesia’s economic growth."
MIGA is providing HSBC with a Non-Honoring of Financial Obligations by a State-Owned Enterprise guarantee, which enables Bank Mandiri to access international funding that would otherwise not be available at comparable terms.
MIGA’s Non-Honoring of Public Debt coverage provides credit enhancement in transactions involving sovereign and sub-sovereign entities, as well as state-owned enterprises.
About Bank Mandiri
Bank Mandiri is one of Indonesia's leading financial institutions, offering integrated services across Corporate, Institutional Relations, Commercial, Micro & SME, Consumer, Treasury and International Banking, reinforced by synergy with Mandiri Group entities spanning securities, multifinance, insurance, remittance and venture capital, each a leading performer in its segment. As part of Danantara, the bank continues advancing its digital proposition through Livin' by Mandiri for retail customers and Kopra by Mandiri, a unified ecosystem serving corporate and SME clients, supported by an extensive nationwide network and a presence across seven international financial hubs. Further information is available at www.bankmandiri.co.id.
About HSBC
The Hongkong and Shanghai Banking Corporation Limited is the founding member of the HSBC Group. HSBC serves customers worldwide from offices in 56 countries and territories. With assets of $3,306bn as of March 31, 2026, HSBC is one of the world’s largest banking and financial services organisations.
About the World Bank Group Guarantee Platform
Initiated in 2024, the World Bank Group Guarantee Platform consolidates guarantee products and experts from across the World Bank Group at MIGA. It provides a simplified and comprehensive menu of guarantee solutions, enabling clients to select the instrument that best suits their needs. The platform streamlines processes, removes redundancies, and provides greater accessibility by de-risking investments in developing countries. Its goal is to boost the World Bank Group’s annual guarantee issuance to $20 billion by 2030.
For more information about the guarantee platform, please visit: https://www.worldbank.org/wbgguarantees
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Contact: In Washington: Elizabeth Howton, ehowton [at] worldbankgroup.org (ehowton[at]worldbankgroup[dot]org)