Country
Indonesia

Local Project Partners
ASBANDA (association),
27 regional development banks (Bank Pembangunan Daerah – BPDs)

German Project Partner
n.n.

Donators
German Federal Ministry for Economic Cooperation and Development (BMZ)

Duration
1 June 2010 to 31 March 2020
(Overall project term)

Economic growth and poverty reduction, especially in remote regions, are amongst the key challenges in Indonesia.

Against this backdrop, Sparkassenstiftung is assisting the regional development banks (Bank Pembangunan Daerah, or BPDs for short) to roll out a market-oriented microlending product for micro and small entrepreneurs (MSMEs). Today already, the consolidated BPDs are the fourth largest banking group in Indonesia. Furthermore, they operate the country’s second largest nationwide branch office network. Project activities also aim to build the institutional capacity of the regional banks’ national umbrella association ASBANDA. A coordinated business model, a functional association structure and the growth of specialist expertise within the association are enabling the BPDs to work closer together as a group. As such, Sparkassenstiftung is supporting the Indonesian government’s BPD transformation programme, which aims to turn the BPDs into a stable and efficient group of independent banks.