At the end of March, the Sparkassenstiftung für internationale Kooperation (Savings Banks Foundation for International Cooperation) and the BPD Bank Sumut signed a Memorandum of Understanding. Thus, the ground was paved for a successful continuation of the project work with the regional development bank in the province of North Sumatra for the next three years.
Since its launch in 2010, the project has developed successfully. Financially backed by Germany’s Federal Ministry for Economic Cooperation and Development (BMZ), it focuses on promoting the regional development banks (BPDs) in Indonesia by enabling them to offer decentralised financial services.
Already during the first main project phase, Sparkassenstiftung has implemented a microloan product for micro and small-scale enterprises including the corresponding credit technology at Bank Sumut. Thus, the institution can offer a product, which is in line with market requirements and meets the institutional framework conditions of Bank Sumut. This first project phase also focused on the training and further education of bank staff.
New project phase: Strengthening the ground work
The recently signed agreement marks the start of the second project phase between Sparkassenstiftung and Bank Sumut. The task on hand now is to strengthen the ground work by expanding the project work on a broader and more sustainable basis. In addition to the training of new loan officers, the microloan portfolio of the bank is to be increased significantly. With the help of Sparkassenstiftung’s micro business game, a haptic business simulation particularly catering to the needs of microentrepreneurs, the financial literacy of this target group in the province of North Sumatra is to be enhanced, too. The development and introduction of further financial products and services for corporate customers is also on the agenda of the next project phase.
Bank Sumut: Important pillar of project work
In the course of cooperation, Bank Sumut has developed into a strong and important partner. The financial institution supports Sparkassenstiftung’s project with experienced credit experts within the scope of a mentoring programme. Thus, it supports other regional development banks (BPDs) in introducing microloans and staff training.
Contact partners:
Thorsten Bosker / Carina Lau
Sparkassenstiftung für internationale Kooperation
Simrockstraße 4
53113 Bonn
Phone: +49 228 9703 6633 / 6608
Fax: +49 228 9703 6613