Bank DBS Indonesia Disburses Rp1 Trillion Loan to PNM to Support the Advancement of Women-Owned MSMEs in Indonesia | Bahasa
Indonesia.19 Mar 2024.0 min read
Funding scheme for ultra MSMEs run by low-income families
Indonesia, 19 Mar 2024 - Bank DBS Indonesia disbursed Rp1 trillion worth of uncommitted revolving credit facility to PT Permodalan Nasional Madani (PNM) through the MEKAAR (Membina Ekonomi Keluarga Sejahtera) programme as part of the bank's commitment to supporting the growth of micro, small and medium enterprises (MSMEs) in Indonesia, especially women-led MSMEs. Providing financing for this sector is in line with Bank DBS Indonesia's vision and mission to support the government in boosting economic growth through MSMEs, social equality, and financial inclusion by expanding access to finance. The fund disbursement was marked by a signing ceremony attended by Head of Institutional Banking Group at PT Bank DBS Indonesia Kunardy Lie and Director of Operations, Digital and Information Technology at PT PNM Sunar Basuki.
Ministry of Cooperatives and SMEs data show there are 37 million MSMEs in Indonesia, most of them led by women entrepreneurs. However, most women still face difficulties in raising business capital due to social exclusion, limited experience with the formal banking system, difficulty in obtaining loans, and an overall lack of financial capability. Meanwhile, Financial Services Authority (OJK) data show that in 2022, Indonesia’s financial literacy index was 49.6 percent. The OJK is expected to increase the rate to 65 percent by 2027. The OJK also notes that the gap between the level of financial skills and inclusion in Indonesia is still wide, at around 35 percent.
Head of Institutional Banking Group at PT Bank DBS Indonesia Kunardy Lie said, "We are very pleased to be working with PNM to help women secure funding so that they can become financially independent. We believe that with this partnership, we are helping the Indonesian government empower women so that they can manage their finances and become the backbone of their families or providers of welfare. In addition, we appreciate PNM's outstanding funding principle that promotes solidarity, sisterhood, and empathy among funding group members. As has been discussed extensively, the women empowering women principle has proven successful in PNM's group funding scheme."
One of the requirements of the ultra MSME loan is that the fund should be channeled specifically to women. Data show that women exhibit lower non-performing loans (NPLs) than most because they are more responsible and punctual in repaying their debts. In addition, PNM's NPL rate of only 0.5 percent shows that women who work together with other women in their community have a positive impact on loan performance.
PT PNM Director of Operations, Digital and Information Technology Sunar Basuki said, "The funding from Bank DBS Indonesia will support the MEKAAR programme initiated by PNM targeting millions of women, especially those engaged in the ultra MSME sector and come from underprivileged families. PNM not only provides capital money but also business development programmes. This demonstrates PNM's support for home-based businesses so that they can maintain production and diversify their products."
Financial inclusion and gender equality are a key focus of Bank DBS Indonesia's sustainability principles. Bank DBS Indonesia has also provided loans for several fintech partners to be disbursed to the unbanked. Additionally, through DBS Foundation, Bank DBS Indonesia provides grants for social entrepreneurs, most of them were founded by women and aim at empowering women such as Du Anyam, SukkhaCita, TridiOasis, and Liberty Society.
Bank DBS Indonesia’s sustainability commitment is based on three pillars, namely Responsible Banking that focuses on delivering responsible banking products, Responsible Business Practice that emphasises Bank DBS Indonesia's efforts in running greener business operations, and Impact Beyond Banking, which seeks to create a positive impact on the wider community.
Recently, Bank DBS Indonesia received the Triple A Awards for Sustainable Finance from The Asset for the disbursements of Environmental, Social and Governance loans, including in the categories of Best Sustainability-linked Loan for the NBFI sector and Best Green Utility.
For more information on Bank DBS Indonesia's sustainability commitments, please click here.
About DBS
DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank’s “AA-” and “Aa1” credit ratings are among the highest in the world.
Recognised for its global leadership, DBS has been named “World’s Best Bank” by Global Finance, “World’s Best Bank” by Euromoney and “Global Bank of the Year” by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney and the world’s “Most Innovative in Digital Banking” by The Banker. In addition, DBS has been accorded the “Safest Bank in Asia“ award by Global Finance for 15 consecutive years from 2009 to 2023. DBS Indonesia is ranked second in the top as World’s Best Bank in Indonesia for three consecutive years from 2020 to 2022.
Established in 1989 as part of the Singapore-based DBS Group, PT Bank DBS Indonesia (Bank DBS Indonesia) is one of the banks with the longest history in Asia. Currently operating 1 Head Office, 13 Branch Offices, 16 Assistant Offices and 4 Functional Offices and 3,011 active employees in 15 Major Cities in Indonesia, DBS Bank Indonesia provides comprehensive banking services in the corporate, SME and consumer banking segments. We also see a purpose beyond banking and are committed to supporting our customers, employees and the community towards a sustainable future.
PT Bank DBS Indonesia is licensed and supervised by The Indonesian Financial Services Authority (OJK) and Bank Indonesia (BI) and an insured member of Indonesia Deposit Insurance Corporation (LPS).
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For further information, please visit www.dbs.com.
Ministry of Cooperatives and SMEs data show there are 37 million MSMEs in Indonesia, most of them led by women entrepreneurs. However, most women still face difficulties in raising business capital due to social exclusion, limited experience with the formal banking system, difficulty in obtaining loans, and an overall lack of financial capability. Meanwhile, Financial Services Authority (OJK) data show that in 2022, Indonesia’s financial literacy index was 49.6 percent. The OJK is expected to increase the rate to 65 percent by 2027. The OJK also notes that the gap between the level of financial skills and inclusion in Indonesia is still wide, at around 35 percent.
Head of Institutional Banking Group at PT Bank DBS Indonesia Kunardy Lie said, "We are very pleased to be working with PNM to help women secure funding so that they can become financially independent. We believe that with this partnership, we are helping the Indonesian government empower women so that they can manage their finances and become the backbone of their families or providers of welfare. In addition, we appreciate PNM's outstanding funding principle that promotes solidarity, sisterhood, and empathy among funding group members. As has been discussed extensively, the women empowering women principle has proven successful in PNM's group funding scheme."
One of the requirements of the ultra MSME loan is that the fund should be channeled specifically to women. Data show that women exhibit lower non-performing loans (NPLs) than most because they are more responsible and punctual in repaying their debts. In addition, PNM's NPL rate of only 0.5 percent shows that women who work together with other women in their community have a positive impact on loan performance.
PT PNM Director of Operations, Digital and Information Technology Sunar Basuki said, "The funding from Bank DBS Indonesia will support the MEKAAR programme initiated by PNM targeting millions of women, especially those engaged in the ultra MSME sector and come from underprivileged families. PNM not only provides capital money but also business development programmes. This demonstrates PNM's support for home-based businesses so that they can maintain production and diversify their products."
Financial inclusion and gender equality are a key focus of Bank DBS Indonesia's sustainability principles. Bank DBS Indonesia has also provided loans for several fintech partners to be disbursed to the unbanked. Additionally, through DBS Foundation, Bank DBS Indonesia provides grants for social entrepreneurs, most of them were founded by women and aim at empowering women such as Du Anyam, SukkhaCita, TridiOasis, and Liberty Society.
Bank DBS Indonesia’s sustainability commitment is based on three pillars, namely Responsible Banking that focuses on delivering responsible banking products, Responsible Business Practice that emphasises Bank DBS Indonesia's efforts in running greener business operations, and Impact Beyond Banking, which seeks to create a positive impact on the wider community.
Recently, Bank DBS Indonesia received the Triple A Awards for Sustainable Finance from The Asset for the disbursements of Environmental, Social and Governance loans, including in the categories of Best Sustainability-linked Loan for the NBFI sector and Best Green Utility.
For more information on Bank DBS Indonesia's sustainability commitments, please click here.
About DBS
DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank’s “AA-” and “Aa1” credit ratings are among the highest in the world.
Recognised for its global leadership, DBS has been named “World’s Best Bank” by Global Finance, “World’s Best Bank” by Euromoney and “Global Bank of the Year” by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney and the world’s “Most Innovative in Digital Banking” by The Banker. In addition, DBS has been accorded the “Safest Bank in Asia“ award by Global Finance for 15 consecutive years from 2009 to 2023. DBS Indonesia is ranked second in the top as World’s Best Bank in Indonesia for three consecutive years from 2020 to 2022.
Established in 1989 as part of the Singapore-based DBS Group, PT Bank DBS Indonesia (Bank DBS Indonesia) is one of the banks with the longest history in Asia. Currently operating 1 Head Office, 13 Branch Offices, 16 Assistant Offices and 4 Functional Offices and 3,011 active employees in 15 Major Cities in Indonesia, DBS Bank Indonesia provides comprehensive banking services in the corporate, SME and consumer banking segments. We also see a purpose beyond banking and are committed to supporting our customers, employees and the community towards a sustainable future.
PT Bank DBS Indonesia is licensed and supervised by The Indonesian Financial Services Authority (OJK) and Bank Indonesia (BI) and an insured member of Indonesia Deposit Insurance Corporation (LPS).
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For further information, please visit www.dbs.com.
