Jakarta
,
April 20, 2009
-Indonesia's first microfinance wholesale bank, Bank Andara, was launched today with the assistance of IFC, a member of the World Bank Group. Bank Andara is expected to provide tailored financial products and services to more than 2,000 microfinance institutions in the country, allowing millions of Indonesian micro-entrepreneurs and low-income households to gain access to much needed financial services.
Together with Mercy Corp, Hivos Triodos Funds, and Cordaid, IFC is investing up to $5 million, equal to 19.9% of the total investment, to acquire and recapitalize a small local commercial bank, PT Bank Sri Partha. This bank is being re-launched as a microfinance wholesale bank and newly renamed Bank Andara.
In addition, IFC’s investment is accompanied by advisory services to support a branding and marketing strategy that will position Bank Andara as the wholesale bank of choice in Indonesia.
Adam Sack, IFC Country Manager for Indonesia, said today at the official launch of Bank Andara, “The creation of a wholesale microfinance bank presents a unique opportunity. The bank will allow microfinance institutions to provide more and better services to micro, small and medium enterprises as well as individuals who currrently lack access to financial services.”
Bank Andara is expected to act as a catalyst for microfinance development and demonstrate a good performance and application of best practice in the market, while helping offset the current liquidity crunch. Within five years, the wholesale bank is expected to reach one million micro-entrepreneurs not previously served by formal financial institutions, allowing them to improve and expand their businesses.
IFC has played a key role in conceptualizing, structuring and promoting Bank Andara. With its global experience in microfinance, IFC helps attract potential partners and investors. Going forward, IFC also plans to provide a wide range of technical expertise to the bank.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, visit
www.ifc.org
.
