Amartha and Norfund Establish Cooperation, Providing Capital for the Digitization of the Informal Economy

Amartha, a peer to peer lending financial technology company that focuses on empowering women micro-enterprises in villages, collaborates with Norfund by providing access to capital to digitize the informal economy sector in Indonesia.

This collaboration was marked by the signing of a collaboration between the Norwegian Ambassador, Vegard Kaale and the Founder & CEO of Amartha, Andi Taufan Garuda Putra at the Norwegian Embassy, ​​Jakarta on Friday (4 June 2021).

Norfund is an investment fund from the Norwegian government for developing countries with a mission to create jobs and improve people's welfare by investing in businesses that promote sustainable development. With funding worth USD 7.5 million or equivalent to Rp 107 billion from Norfund, Amartha will channel venture capital to empower women micro entrepreneurs in rural areas and encourage environmentally friendly business activities with efforts such as minimizing plastic waste and adopting an energy efficient culture. using affordable solar panels.

Since 2018, Amartha has been actively participating in environmentally friendly activities by promoting environmental, social and corporate management or ESG (Environmental, Social, and Corporate Governance) by launching an annual impact and sustainability report (Impact and Sustainability Annual Report). In 2019, Amartha won the GIIRS (Global Impact Investing Rating System) Impact Rating from B-Corp with the best rating, namely Platinum. In 2020, Amartha initiated the Plastic Waste Womenpreneur (PWW) program by providing financing to women micro-entrepreneurs engaged in reducing plastic waste in the village. Also, Amartha's membership in the Financing Task Force of NPAP (National Plastic Action Partnership), a global alliance to reduce plastic waste in the ocean. Amartha is committed to continuing to contribute to this issue.

Fay Chetnakarnkul, Investment Director of Norfund and Head of Asia regional Office said, “Norfund is collaborating and funding financial institutions to support them to be even stronger in providing access to capital and financial services to the micro-economy and unbanked segments.

We really appreciate this partnership with Amartha and their efforts to empower women micro entrepreneurs in Indonesia.”

The Norwegian Ambassador, Vegard Kaale added, “Although Indonesia's economic growth is very good, financial inclusion is still a big issue in the underprivileged segment of society – especially for women micro-entrepreneurs. Norfund is an important tool for the Norwegian Government to strengthen private institutions in developing countries, as well as reduce poverty. This funding is Norfund's first investment in a financial institution in Indonesia and I hope this effort will contribute to Amartha's growth and success.”

Andi Taufan Garuda Putra, Founder & CEO of Amartha, said “Amartha is very grateful and proud to be the first fintech company in Southeast Asia to receive funding from Norfund. Through the support from Norfund, it marks the confidence in our efforts to recover in this difficult time, namely the pandemic that will not end.

With guidance from Norway as a world leader in the sustainable energy sector, Amartha hopes to gain knowledge and experience from the best, especially in terms of sustainable financing for the microeconomic segment throughout Indonesia. Collaboration with Norfund not only helps economic growth, but also preserves the earth we love.”

Amartha has managed to channel more than IDR 3.7 trillion to empower 678,502 women micro entrepreneurs in more than 18,900 villages spread across the islands of Java, Sumatra and Sulawesi. During the pandemic, Amartha continues to grow and become more resilient. With a much larger loan amount and a disbursement amount exceeding the pre-pandemic value.