Koperasi Mitra Dhuafa

Debt : July 2021

BIO has granted a EUR 6 M loan to Koperasi Mitra Dhuafa, an Indonesian savings and loan cooperative owned by rural women.

Amount

€ 6,000,000.00

Type of investment

Debt

Development impacts

  • Local economic growth
  • Financial inclusion
  • Food security & rural development
  • Promotion of ESG best practices
  • Gender

Beneficiary locations

Asia: Indonesia

Investment field

Financial Institutions

Activity

MFI

Organisation

Koperasi Mitra Dhuafa

Domicile

Indonesia

KOMIDA is a rural MFI, created after the 2004 tsunami that killed about 228k people in a dozen countries, including 168,000 in Aceh (Indonesia). Since 2005, the MFI provides lending and saving services to microentrepreneur women. It is a leading Indonesian MFI with 754,379 members.

The institution was initially active as a foundation. When the law changed its microfinance activities were transferred to a new cooperative. As of July 2021, KOMIDA counted 318 branches, more than 4,000 staff members, and a loan portfolio of EUR 102M.

Development impacts

  • Local economic growth

    Credit provision to MSMEs
    Purpose of the investment is to support the further growth of the institution's portfolio that is almost exclusively focused on microfinance.
    Providing loans to microentrepreneurs, mainly for income-generating activities but also for housing, sanitation, education, and consumption loans (<1%).

    Mobilisation of local savings

    Savings and financial inclusion are a development priority for Indonesia where the level of local deposits is low.

  • Financial inclusion

    The institution's main objective is to increase financial inclusion by providing access to basic financial services in underserved areas and targeting almost exclusively rural female microentrepreneurs (with fair and responsible pricing).

    Main products are micro-entreprises loans. KOMIDA aims at attracting another 400k active women clients by 2025. It deploys the robust Grameen group methodology.

  • Food security & rural development

    Given Indonesia's vastly underserved rural population, rural development is part of their core mission and they have an extensive on-the-ground rural network.

    KOMIDA is mostly active in rural areas, with 22% of the portfolio invested in crops/cattle and 95% of rural clients.

  • Promotion of ESG best practices

    KOMIDA is SMART-certified, and follows best practices when it comes to Client Protection Principles. BIO stamp of approval will comfort and reinforce the brand of the institution as BIO is the first EDFI to disburse a loan to the institution.

  • Gender

    Komida has 100% of woman clients while in Indonesia only 51% of all women are part of the workforce (vs. 82% of all men).

    The HR/Financial Director (co-founder) and the majority of board members are woman.

    Gender is a primary goal of this project.

E&S Impact

BIO will support Komida in:

  • Human Resources: measures regarding workers’ organization and overtime
  • Adopt the EDFI exclusion list
  • Gender

Current situation

Komida has no stand-alone E&S policy. The institution has obtained the Smart Campaign certification since 2017. A dedicated SPM department exists at head office, that monitors social performance using the SPI4 tool. Komida provides training to clients on themes such as health, financial, family and children's education and environmental issues.

Risk Category: C

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