Empowering cattle farmers: MSC’s assistance for finance product development in Indonesia

• Dec 28, 2023
• 1 min

MSC provided technical assistance to Bank Sinarmas to develop a finance product on the beef value chain for cattle farmers in Tuban, East Java. The intervention successfully disbursed 56 loans worth IDR 4.24 billion (USD 318,000) by April 2017.

MSC provided technical assistance to Bank Sinarmas to develop a finance product on the beef value chain for cattle farmers in Tuban, East Java. MSC conducted the product’s pre-pilot review, developed operational processes, created a credit risk-monitoring tool, and provided recommendations for scale-up.

Bank Sinarmas launched the product in December 2016. By April 2017, the product had successfully disbursed 56 loans worth IDR 4.24 billion (USD 318,000) to 49 farmers in Tuban Regency.

At the end of 2017, Bank Sinarmas had plans to disburse 346 loans worth IDR 26.3 billion (USD 1.9 million). The bank also intended to offer a similar product in other geographies.

The Australia Indonesia Partnership for Rural Economic Development program (AIP-Rural) commissioned the assignment through the Strengthening Agricultural Finance in Rural Areas (SAFIRA) project. The SAFIRA project ran for three years and received support from a rural economic development partnership between the governments of Indonesia and Australia.