Amartha & IFC Partner with $206 Million for Women-Led MSMEs in Indonesia
By: WE Staff | Thursday, 14 September 2023
Amartha, a renowned Indonesian peer-to-peer lending platform, has announced a substantial cooperation with the International Finance Corporation (IFC) to support the growth of women-led MSMEs in Indonesia. A major finance infusion of 3 trillion rupiah (about US$206 million) is included in the agreement.
As Indonesia's economic environment advances, Amartha's engagement with the IFC intends to not only increase the platform's foreign investor base but also alleviate the country's current gap in access to digital financial products.
The importance of this initiative was emphasised by Riccardo Puliti, the IFC's Regional Vice President for Asia and the Pacific, who stated, "The financing gap faced by female entrepreneurs in Indonesia - who are crucial to the overall economy - only widened because of Covid-19, which saw women overwhelmingly bear the load of greater domestic and childcare pressures."
To address these issues and promote financial inclusion, Amartha has committed to distribute more than 70% of the obtained financing to entrepreneurs outside of Java island, with the goal of empowering women-led MSMEs across the country.
Amartha, which is recognised for linking investors with female microentrepreneurs looking for capital to build their enterprises, offers loans starting at 1,500,000 rupiah (about US$100). Amartha's relationship with the IFC shows its commitment to developing business and financial development among women in Indonesia, with an exceptional track record of collecting over US$185 million to date.
Notably, Amartha has formed a partnership with Grab-backed Superbank, allowing the latter to give working capital loans to female entrepreneurs, hence expanding chances for female-led firms in the region.
This collaboration between Amartha and the IFC is intended to not only boost economic growth but also pave the path for a more inclusive and fair financial ecosystem for Indonesian women entrepreneurs.