More than 80% of the clients live in the rural or semi-rural areas of the island of Java. The Gross Loan Portfolio of Bina Artha is roughly USD 10 million. Targeting the poorer segment of the Indonesian microfinance market, Bina Artha’s average outstanding loan size is USD 80.
The Mission of Bina Artha is “to provide specialized financial services to the economically active low income population in a fair, transparent, efficient and sustainable manner”. The Company’s Vision is “to be a leading provider of specialized financial services by serving 1,000,000 households in Indonesia in 2020.”
Njord Andrewes, Investment Director at NMI stated: “The Company has been able to keep a focus on its mission of serving only low-income people with little or no access to the formal financial sector, with roughly 87% of Bina Artha client households having an income per household member of less than USD 3 per day. Further, only 5% of Bina Artha clients have loans with other institutions, which shows the additionality that Bina Artha and its products bring to the Indonesian microfinance market. The combination of outreach, introduction of new products and the strong commitment to Client Protection Principles makes us delighted to become a long-term partner with this institution”.
Christian Banno, CEO of Bina Artha, stated: "NMI has been following the progresses of Bina Artha since 2012 supporting together with other partners the development of our individual lending vertical and demonstrating a strong alignment with our mission and vision. We are therefore extremely happy to bring the relationship with NMI to the next level and finally start a long-term debt partnership”.
About Bina Artha (www.bina-artha.net/
PT. Bina Artha Ventura is a registered Venture Capital Company actively engaged in the microfinance sector in Indonesia since December 2011. Bina Artha offers working capital through a modified version of the traditional microfinance Grameen group methodology exclusively to women who do not have or have only partial access to the formal financial sector. In addition the Company provides access to business loans for small enterprises. Bina Artha is inspired by the ideal that availing access to finance to low-income households engaged in micro and small enterprises in Java provides them with an important tool to achieve economic and social upliftment. Bina Artha thrives to work in a fair, transparent, efficient and sustainable manner and has a quite ambitious dream: to reach with our financial services 1,000,000 households in Indonesia in 2020!
About Norwegian Microfinance Initiative (NMI)
The Norwegian Microfinance Initiative ("NMI") was established in 2008 as a cooperation between the public authorities and private investors in Norway. Norfund, the Norwegian Development Finance Institution, owned by the Government of Norway, and the private investors consist of DNB Livsforsikring, Ferd, KLP and Storebrand. The Mission of NMI is to contribute to the empowerment of poor people and to the creation of jobs, wealth and economic social sustainability in developing countries by investing in and supporting Microfinance Institutions ("MFIs").