Beyond Emergency Responses: Ensuring the Legacy of Market-Based Microfinance Expansion
The creation of a Microfinance Innovation Fund was a prominent feature of the Earthquake and Tsunami Emergency Support Project in Indonesia. To coopt success, before establishing the Fund, the project provided technical assistance to build the capacity of partner banks, created a Board for the Fund, setup guidelines for operations, extended loans and deposits at near-market rates, and partnered with PT. Permodalan Nasional Madani that assumed the role of Fund custodian. The Microfinance Innovation Fund is set to continue successful fund operations long after project completion.