Amartha, an Indonesia-based platform for entrepreneurs, announced it has secured a digital wallet license from Bank Indonesia and transformed into Amartha Financial Group.
The company is expanding beyond microloans into digital payments, micro-investments, and other financial services for Indonesia’s rural economy, which employs over 40 million informal workers according to the Central Statistics Agency.
“Our vision is to catalyze the potential of Indonesia’s rural economy,” said Andi Taufan Garuda Putra, founder and chief executive officer of Amartha. He added:
By combining digital technology with human understanding, we are committed to scale impact for the grassroots.
Bank Indonesia Head of Financial Inclusion and Green Economy Department Anastuty Kusumowardhani said the central bank will support financial inclusion efforts through policy measures and education programs targeting women.
Founded in 2010, Amartha has channeled loans to 3.3 million women-led microbusinesses across 50,000 villages over 15 years.
The company’s services allow entrepreneurs to borrow for small businesses, conduct micro-investments, and make digital payments. The model aims to improve productivity and lower transaction costs at household and community levels.
Nailul Huda, director of digital economy at the Center of Economic and Law Studies, said 81 percent of Indonesians lack access to formal financial services, with rural areas lagging behind urban counterparts.
Amartha operates an artificial intelligence-powered credit scoring system for rural borrowers using community-level data collected over a decade.
A 2024 survey by the Indonesian Fintech Association found 96 percent of its members focus on cities in Java, overlooking Indonesia’s rural population of more than 100 million.
The company has attracted funding from the International Finance Corporation, Accion Digital Transformation Fund, Women’s World Banking, and European sovereign funds.
“Global investors are drawn to our approach and governance standards, including certified borrower protection practices,” said Chief Financial Officer Ramdhan Anggakaradibrata.
The company claims to have been profitable since 2021.
Njord Andrewes, managing partner at Accion Digital Transformation, said the firm supports Amartha’s expansion of financial services for entrepreneurs through digital tools.