In Java, Panin Bank is developing microfinance services for small businesses and individual entrepreneurs. By offering long maturities and low rates, it improves access to financing for all.
Panin Bank was set up in 1971 and is a universal bank offering a wide range of banking products to a corporate, SME and private client base. Panin Bank has 440 branches and today ranks 7th in the Indonesian banking sector.
Following a 3-year pilot program in East Java, Panin Bank has decided to develop in the microfinance segment to serve microenterprises and individual entrepreneurs. Proparco’s loan will finance the growth in this new activity, firstly in Java, then in the rest of the country. Panin Bank’s priority target will be small businesses. It will offer longer maturities (1 to 5 years) and lower rates (25%) than the other microfinance players.
This operation will contribute to improving access to financing for the Indonesian population (40% of which remains excluded from the formal credit market). It will support job creation and help increase incomes for clients and their families. More generally, it will contribute to formalizing and strengthening the local economic base.