Microfinance Focus, August 3, 2011: For promoting financial inclusion of microentrepreneurs and small businesses in Indonesia, Citi Indonesia, the Overseas Private Investment Corporation (OPIC) and Bank Danamon today announced the closing of a USD 20 Million term loan to fund Bank Danamon’s Microfinance program, Danamon Simpan Pinjam (DSP).

This loan is a part of Citi’s and OPIC’s $250 million joint global initiative to support microfinance lending in emerging markets worldwide.

“Microfinance has tremendous potential not only to help tackle unemployment and promote financial access in Indonesia, but also as one of the engines of the country’s economic growth,” says Kunardy Lie, Head of Global Banking Citi Indonesia.

Danamon Simpan Pinjam focuses on small traders, micro-entrepreneurs and the value chain for entire businesses. This year, it will open around 157 new DSP’s outlets across Indonesia to establish total of more than 1,200 DSP’s outlets, to provide financial access to the society.

“Indonesia has been a leading center for microfinance for decades, and the scale and diversity of its contribution to financial inclusion is evidenced by the expansion of Danamon Simpan Pinjam’s program supported by this facility,” said Bob Annibale, Citi’s Global Director of Microfinance.