Five year plan to increase microlending market penetration in Indonesia.

1. The
Loan
Wolf
-­‐
University
of
Melbourne
Aditya
Darma
Saputra
Elvira
Hakim
Katherene
Reji
Maggie
Singorahardjo
Executive Summary
Our proposal aims to assist Amartha in achieving its objectives to
disburse over 50,000 loans by 2021. Our mission is to grow Amartha’s
business whilst improving the social welfare of rural Indonesia. The heart of
our proposal is centered on the unique Indonesia culture an improvement in
the wellbeing of low-income rural areas.
Our industry analysis demonstrates a growing number of micro
borrowers in Indonesia, with an estimated compounded annual growth rate
(CAGR) of 4.46% per annum. With the regulation set by Bank Indonesia to
increase the capacity of microloans in financial institutions to 20% by 2018,
there may potentially be a further increase in customer base.
We begin by targeting the low financial literacy rate by implementing
services to increase literacy scores and equip people with skills needed to
succeed in the business arena. We then implement the GAE program to
increase awareness and encourage retention of labour force in the country, as
opposed to employment overseas. In the second year, we initiate the OPO
scheme, which is intended to motivate more women to engage in
entrepreneurial ventures. This would be made possible by allowing formation
of partnerships to sensitise them to the business environment. With growing
number of borrowers, we aim to increase the capacity of Amartha by opening
up 14 new branches in areas of growing demand by the end of 2021.
Our research indicates that the successful implementation of our
proposal will realistically lead to an increase in numbers of borrowers to
approximately 62,000 and therefore also increases the number of loans
disbursed. This number has exceeded the objective that underlies this
particular proposal.