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