IFC and Amartha Collaborate to Support Indonesian Women-led Microbusinesses

To increase access to capital for women-led microbusinesses, an innovative funding solution has been created by the International Finance Corporation (IFC) and Amartha, an Indonesian fintech platform for microfinance. The agreement includes international impact investors, with a potential scale-up of $206 million using capital market techniques.

IFC, the World Bank's private sector arm, has committed funds from its account as a cornerstone investor in order to establish the platform and plans to raise the remaining funds from reputable foreign investors. IFC and Amartha will support companies that collectively employ tens of millions of people and play a significant role in the economy by increasing access to finance for microenterprises.

The agreement is also thought to have the potential to expand Indonesia's capital markets by acting as a catalyst for future investments by serving as a model. Amartha is a leader in developing financial Infrastructure and promoting financial inclusion for grassroots communities. With more than 70 per cent of its loans underwritten outside Java, Amartha helps to balance the economic development of non-java regions and rural communities. Amartha's primary focus is on women micro-businesses in rural areas outside of Java where financing gaps are the widest, The initiative announced is to fill the financing gaps of ultra-microbusinesses in some of the most underserved segments and geographies of the country.