“Microfinance Sector, the Key Quality of Economic Growth”
87 percent from 40 million independent entrepreneurs in micro and small enterprises in Indonesia does not have access to banking services. The direct impact, independent entrepreneurs are experiencing difficulties in developing their business. For that, it needs a strong microfinance sector and able to provide banking access to micro and small entrepreneurs in Indonesia. Thus, the microfinance sector to encourage Indonesia's economic growth quality.
In a press conference on Wednesday, April 27, 2011 to commemorate the 2nd anniversary of Bank Andara, Don Johnston, Chief Business Development Officer Bank Andara, said: "Indonesia needs a quality economic growth that is inclusive economic growth, or growth reach low-income groups. "Bank Andara, as the parent bank of microfinance institutions (MFIs) in Indonesia was established to strengthen the micro banking sector. "This can be achieved by focusing on quality, coverage and service modernization. "
Andara Link Launch
In order to improve the quality of its services, Bank Andara launched Andara Link, an Internet-based services and mobile banking. "Through partnerships with MFIs, this service will reach the low income customers by using quality modern technology" said Irianto Kusumadjaja, Director of Information and Operations Bank Andara.
The main advantage is Andara Link transaction can be done at the customer site so that MFIs can provide banking services without having to set up branch offices. Andara Link also allows MFIs to reach customers and potential customers who have not had access to banking services. This can be done by using Electronic Data Capture (EDC), a tool similar to those commonly used for credit card transactions and is linked by a central server via the internet and mobile networks.
Through Andara Link, MFIs can provide reception services domestic remittances and bill payment, such as electricity and telephone, for the customers. In addition, Andara Link also provides training and a forum for MFIs to share knowledge and experiences among them. "Bank Andara set a target 200 MFIs to join AndaraLink in the end of 2011 from 81 MFIs at this time", added Irianto Kusumadjaja.
Two Year Bank Andara
Bank Andara is the first parent bank focusing on serving the MFIs in Indonesia, including rural banks (BPR), cooperatives, and other non-Bank MFI. "During two years operation, Bank Andara has partnered with 397 MFIs in Java and Bali that reached 930,000 customers. Total investment capital distributed by the Bank Andara reached Rp 200 billion. MFIs have the advantage of reaching micro and small enterprises and low- income groups and poor, including in rural areas. Meanwhile, on the other hand, MFIs need support in terms of capital, technology, and banking services to customers," said Johnston further.
Bank Andara has been appointed by Bank Indonesia to be the Apex Bank or the parent bank for MFIs in Indonesia for Jakarta, Bogor, Depok, Tangerang (Jabodetabek) and Bali. Bank Andara role as the Apex Bank are to assist rural banks (BPR) liquidity problem, provide technical assistance and develop technology-based products and services for rural banks (BPR).
In performing its role as the Apex Bank, Bank Andara has initiated Andara Bersama BPR (ABB) program, which collects and manages the funds together to keep the liquidity risk of ABB member. Since its launch on August 2009, approximately 120 rural banks in Jabodetabek and Bali have participated in the program.
About Bank Andara
Founded in 2009, Bank Andara is a financial institution that aims to develop a populist economic progress by supporting the Indonesian Microfinance Sector. Through the fund, innovative products and technology-based network services, Bank Andara, seeks to facilitate low-income people to obtain banking services through a growing network of microfinance institutions all over Indonesia. With headquarters in Bali and a fully operational branch office in Jakarta, Bank Andara has served more than 300 MFI network in Jabodetabek, West Java, Central Java, Yogyakarta, East Java, Bali, NTB, Southern Sumatra, including the Riau Islands and South Sulawesi.
Bank Andara consortium led by financier consisting of Mercy Corps, International Finance Corporation, Hivos-Triodos Funds, Cordaid, Germany Development Bank (KfW, which joined in 2010), and I Wayan Gatha as founder of Bank Sri Partha who is the forerunner of Bank Andara.
Phone : (021) 526 0707 Ext. 353
Fax : (021) 526 6003
Email : [email protected]