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.
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.
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.
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.
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.
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.
BIO will support Komida in:
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
Location: Indonesia, Jakarta, South Jakarta