Standard Chartered has extended a US$572mn loan to Indonesia’s Bank Andara.

The loan – worth Rp57bn in local currency – is to be used to on-lend to microfinance institutions (MFIs) – non-banking entities that often fund the operations of the smallest of businesses.

This is the second such facility StanChart has given to Andara. In 2011, it opened a line worth Rp30bn with the local bank. Within the past few years, it has opened similar lines with Family Business Partners Ventura (MBK) and Co-operative Dhuafa.

Standard Chartered Indonesia’s managing director Tom Aaker says: “Indonesia is one of Standard Chartered’s key markets, particularly in Asia. And Indonesia’s economic strength lies in micro, small and medium enterprises. The microfinance loan facility that we provide to Bank Andara is one example of our efforts in promoting the growth of real small businesses in Indonesia. We expect these loans can reach more micro-entrepreneurs in the various regions in Indonesia.”