Indonesia: supporting access to microcredits for women

Komida was set up in 2005, following the tsunami which hit Indonesia, and is a savings and loan cooperative for low-income women. The microfinance institution (MFI) is certified Smart Campaign and offers financial and non-financial products, such as financial training. 

It has become the second largest microfinance institution, with branches in 12 provinces and over 750,000 clients, which are all women and almost all of them are in rural areas. Komida thereby plays an essential role for financial inclusion in a country where the number of unbanked adults remains high. The microfinance institution is also known for its social loans, such as the education loan, the sanitation loan and the house renovation loan.

Proparco’s EUR 7m loan will support the growth in Komida’s lending activity, as well as its geographical expansion.

The project will contribute:

• On the economic front, to supporting the financial inclusion of women in rural areas (who are generally excluded from the traditional banking sector) and the development of their activities, as Proparco’s financing should allow 39,000 women to access microfinance products.
• On the social and gender front, to supporting some 52,000 indirect jobs for women (e.g.: clients of ACEP Niger) during the lifetime of the project. In this respect, the operation qualifies for the 2X Challenge. The project should also create 250 jobs in the MFI. Furthermore, Komida also offers education loans, which are used to finance the education of children, and sanitation loans, to improve access to latrines in rural areas, as well as house renovation loans. 

The project should thereby contribute to SDG 1 (No poverty), SDG 5 (Gender equality), SDG 8 (Decent work and economic growth) and SDG 10 (Reduced inequalities).