Citibank Indonesia and Bank Andara: Supporting microfinance lending in Indonesia
Challenge: As microfinance investing has risen sharply in recent years, one persistent challenge has been getting these funds to the world’s poorest people.
Solution: OPIC is providing a $21.5-million loan guaranty to support a local currency loan from Citibank Indonesia to Bank Andara, a major local microfinance lender.
Impact: Bank Andara will use the funds to make loans to local microfinance institutions, many of which focus specifically on lending to the poorest of the poor. As a wholesaler to other microfinance institutions, Bank Andara is a force multiplier for low-income households and small entrepreneurs in rural Indonesia. In addition, Bank Andara’s innovative use of technology is a powerful channel to provide financial access to micro entrepreneurs and small businesses in Indonesia that lack basic financial services such as bill payments, money transfers and savings accounts.
This project was profiled in 2013