Bank Andara: a wholesale bank for Indonesian
This article is written by Carlos Ani based on information provided by Bank Andara staff and from
information from the bank's website.
The Bank Sri Partha, a local bank based in Bali, was officially transformed into
Bank Andara in 2008 after four international investors injected US$5 million in
additional capital. The investors - Mercy Corps of United States, the World Bank's
private arm International Finance Corporation (IFC), the Hivos-Triodos Fund (HTF) and
the Netherlands-based Cordaid - have contributed 42 percent, 20 percent, 17 percent and
13 percent respectively to additional capital. The commercial bank changed its business
focus from retail into wholesale banking with a priority on assisting MFIs such as
cooperatives, rural banks and rural credit agencies. The CEO Mr Paulus expects the
bank's capital to increase further to Rp 275 billion in 2010 because some investors are
ready to give their support. Paulus said that the bank, through microfinance institutions,
would help people access banking services. It was targeting to channel its credits through
at least 200 out of 40,000 microfinance institutions in Indonesia, particularly those
operating in Java and Bali. "At the beginning, we will allocate Rp 300 billion to be
channeled *via on lending* to one million customers in the next three years," Paulus said.
Bank Andara's primary business objectives are twofold:
To catalyze large-scale outreach to millions of Indonesians lacking access to the financial sector
by providing innovative financial products and services to and through microfinance institutions.
To maximize the value of its shareholders' investments, while creating a long-term, profitable
Bank Andara's primary operational objectives are to:
Increase MFI access to a range of responsive financial products and services on a massive scale.
Incorporate technology and international best practices to expand the range of servic