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British bank provides loans for microfinance

JAKARTA: London-based Standard Chartered Bank (SCB) granted loans worth Rp 30 billion (US$3

The Jakarta Post

Sat, October 1, 2011 Published on Oct. 1, 2011 Published on 2011-10-01T08:00:00+07:00

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AKARTA: London-based Standard Chartered Bank (SCB) granted loans worth Rp 30 billion (US$3.3 million) on Friday to Bank Andara, Indonesia’s only wholesale bank prioritizing assistance to microfinancial agencies such as secondary banks.

SCB Indonesia chief executive officer Tom Aaker said that the loans were proof of the bank’s full commitment to supporting microfinance economics.

“At least 50 million Indonesians still do not have bank access. Many of them even live with an income of less than $2 per day. Only 13 percent of the total population have financial access. We can reach these people through Bank Andara, which cooperates with microfinancial agencies,” Tom said during a press conference
in Jakarta.

Bank Andara business director Don Johnston said that the loan from SCB would allow the bank to distribute loans to 15 to 20 cooperatives and rural banks, which would then channel them to micro-entrepreneurs and street vendors. “Cooperatives and rural banks would each receive a loan worth Rp 1 billion to Rp 2 billion and channel it to at least 100 micro-entrepreneurs and street vendors. A micro-entrepreneur would receive Rp 10 million and a street vendor Rp 2 million to Rp 5 million,” Don said. (fem)