PRNewswire
Jakarta [Indonesia], August 27: Amartha, Indonesia's pioneering platform for grassroots entrepreneurs, today announced its transformation into Amartha Financial Group after securing a digital wallet license from Bank Indonesia. This milestone marks a new chapter in Amartha's mission to unlock the potential of Indonesia's grassroots economy through digital technology.
* Indonesia's Amartha rebrands as Amartha Financial Group, launching digital financial services to transform the rural economy in 50,000 villages and beyond with the backing of global investors.
Now, as Amartha Financial, the company is expanding beyond microloans into digital payments, micro-investments, and other tech-enabled financial services, delivering a complete suite of services, effectively delivering financial infrastructure for Indonesia's rural economy, which employs over 40 million informal workers according to Indonesia's Central Statistics Agency.
"Our vision is to catalyze the sleeping potential of Indonesia's rural economy," said Andi Taufan Garuda Putra, Founder & CEO of Amartha. "By combining digital technology with deep human understanding, we are committed to scale impact for the grassroots, supporting millions of grassroots users to grow income, build assets, and take charge of their future."
Bank Indonesia Head of Financial Inclusion and Green Economy Department, Anastuty Kusumowardhani, said, "Bank Indonesia will continuously support efforts toward nationwide financial inclusion through policy measures and the implementation of financial inclusion education programs targeting strategic groups, including women."
Founded in 2010, Amartha has consistently explored how technology can drive rural financial inclusion. Over the past 15 years, it has successfully channeled loans to more than 3.3 million women-led microbusinesses across 50,000 villages, building long-lasting trust.
Amartha Financial's new services are designed to create a virtuous cycle: entrepreneurs can borrow to start small businesses and generate income, conduct micro-investments to accumulate personal assets, and make digital payments to reduce expenses. This integrated model improves productivity, lowers transaction costs, and strengthens resilience at both household and community levels.
Nailul Huda, Director of Digital Economy at the Center of Economic and Law Studies (CELIOS), said, "Data shows that around 81% of Indonesians still lack full access to formal financial services. This indicates that financial inclusion remains very low, particularly in rural areas. According to OJK, financial inclusion in rural communities continues to lag behind their urban counterparts. Leveraging a deep understanding of rural behavior and needs, there is a pressing need for innovation in rural financial services, including Amartha's initiatives. Amartha's transformation can help advance financial inclusion in rural areas, particularly at the grassroots level, thereby significantly boosting regional economic growth."
At the heart of Amartha's evolution is its AI-powered credit scoring system, tailored for rural borrowers but built on over a decade of community-level data. This combination of high-tech and high-touch underscores Amartha's commitment to pioneering a path that few others have attempted: transforming rural economies through technology designed with and for the grassroots.
By contrast, the Indonesian Fintech Association (AFTECH) 2024 survey reported that the majority of its members, at 96%, focused only on big cities in Java, overlooking Indonesia's more than 100-million strong rural population.
This approach has proved highly attractive to global funders, ranging from the International Finance Corporation (IFC), Accion Digital Transformation Fund, Women's World Banking, and multiple European sovereign funds.
"Global investors are drawn not only to our unique approach, but also to our governance standards, including internationally certified borrower protection practices," said Amartha CFO Ramdhan Anggakaradibrata. He further noted that the company has been profitable since 2021.
Njord Andrewes, Managing Partner at Accion Digital Transformation, said, "We are proud to support Amartha's expansion of responsible financial services for grassroots entrepreneurs. This represents a valuable model of how technology can help drive rural economic growth: creating shared prosperity through digital financial tools that are accessible, trusted, and transformative."
About Amartha Financial
Amartha Financial (PT Amartha Financial Group and subsidiaries) provides full service financial digital services tailored for rural grassroots users in Indonesia, including payments, micro-investments, working capital, and AI-powered credit scoring designed for bottom-of-the-pyramid borrowers.
Since 2010, Amartha Financial has served more than 3.3 million women-led entrepreneurs across 50,000 villages. Its mission is to create inclusive and sustainable prosperity for the grassroots.
For more information, visit www.amartha.com.
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