PT Bina Artha Ventura (Bina Artha), a Venture Capital Company engaged in the microfinance sector, has entered into a Term Facility Agreement for USD 5 million equivalent in Indonesian Rupiah for a 5-year term, financed from the Dutch government fund, MASSIF, managed by FMO.
Bina Artha is a strong, transparent and professional managed MFI that gained sizeable market share in its four years of existence supported by CreditAccess Asia, a solid and well-capitalized group in the Netherlands.
Bina Artha fulfils a role in providing finance to the underserved microsegments of Indonesia by providing group loans and individual lending to micro and small enterprises. FMO's financing will support further growth of the company’s loan portfolio.
The facility will be used by Bina Artha to serve its existing clients with growing working capital needs, as well as new clients who have limited or no access to capital, especially female entrepreneurs. With this investment, FMO supports the development and growth of the Indonesian microfinance sector by providing much needed capital to an important financial intermediary in the market.
FMO’s Chief Executive Officer, Jurgen Rigterink said: “FMO is proud to support the financial sector in Indonesia, a country with great economic prospects. Working together with Bina Artha will contribute greatly to improving access to finance and supporting entrepreneurs in the country”.
MFI’s play a pivotal role promoting economic growth of the base of the pyramid by providing finance to micro and small entrepreneurs. PT Bina Artha Ventura is a growing MFI in a Lower Middle Income Country where financing of these micro and small entrepreneurs has a tremendous development impact.
The financing will have a positive contribution to at least three of the UN Sustainable Development Goals. SDG 1 (no poverty), SDG 5 (gender equality) and SDG 8 (decent work and economic growth).
