PT Mitra Bisnis Keluarga Ventura (MBK)

Print

BIO has extended a loan jointly with the FMO to the Indonesian microfinance institution PT Mitra Bisnis Keluarga Ventura (“MBK”) to support its expanding outreach and portfolio.

MBK was established in 2003 as an NGO to serve exclusively women micro entrepreneurs in rural areas. In order to ensure sustainability, the institution transformed into a non-bank finance company, with a venture capital license, in 2006. It is regulated by the Indonesian Financial Services Authority. MBK’s head office is located near Jakarta and has 301 branch units across the island of Java, Indonesia. The MFI employed nearly 2,300 persons, and boasted a loan portfolio of USD 67 million and 520,000 active borrowers at the end of March 2015, making it the second largest player in this market segment in Indonesia

The support of BIO is critical for the MFI since it does not have access to deposits from the public. Funding from local banks is limited due to their usual requirement of fixed assets as collateral.

Supporting the expansion of MBK will have a positive impact on economic growth by enhancing business activities for self-employed women in rural areas. This MFI provides access to finance in underserved areas in the form of working capital to increase the clients’ economic activities. In terms of inclusive finance, the development impact of this transaction is significant because the entire loan portfolio consists of micro loans, targeting the low-income female population in rural areas of Indonesia.

Employment in the formal sector of the economy only accounts for about a third of total employment in the country. Thus, the micro and small entrepreneurs play an essential role in the development of emerging economies. A major obstacle to the growth of these enterprises is the lack of access to adequate financing. The development of the microfinance sector increasingly fills this gap; professional microfinance institutions provide financial services to micro entrepreneurs, who need to grow their activities, mobilize their small savings on a large scale and bring transactions they generate back into the financial system, enhancing the role of the formal financial sector as a facilitator of economic activity.

Website : www.mbk-ventura.com

  • Investment amount (€):

    USD 6 million

  • Contract signature :

    2014

  • Nature of intervention :

    senior loan

  • Development impacts :

    • 1 — Job creation: direct by new staff to support the growth & indirect by opportunities for micro-entrepreneurs to create sustainable jobs and sources of income.
    • 2 — Positive gender effects: 99% of MBK employees are women and 100% of its clients are women.
    • 3 — Promote capacity building: coaching & career development for employees; financial literacy training for clients
    • 4 — Increase financial inclusion: respond to unmet demand in rural areas
    • 5 — Promotion of Client Protection Principles