Due diligence of Bina Artha Ventura for equity investment, Indonesia

• Jul 29, 2025
• 1 min

Bina Artha Ventura (BAV), a rapidly growing microfinance institution in Indonesia, operates using a modified Grameen group-lending model. As part of its growth strategy, BAV was seeking equity investment to expand outreach and institutional capacity. Opportunity International Australia (OIA) intended to assess BAV’s suitability for investment in line with its impact and governance criteria. To support this, OIA engaged MSC to conduct an operational due diligence of BAV.

MSC carried out a comprehensive due diligence of BAV using a three-fold methodology: desk review, head office assessment, and field-level verification. The review included an analysis of policy manuals, financial records, internal audit reports, MIS outputs, and governance documents to assess operational soundness and financial viability. MSC conducted in-depth interviews with senior leadership, board members, and functional teams to understand organizational alignment with OIA’s investment mandate. Field visits to four branches—Jombang, Nganjuk, Kediri, and Mojokerto—were undertaken to observe on-ground practices. These visits included focus group discussions (FGDs) and individual interviews with staff and clients, as well as a sample-based portfolio audit to validate credit practices and customer engagement.

MSC’s findings informed OIA’s investment decision and shaped technical assistance for BAV’s post-investment support. The investment catalyzed and helped BAV attract additional funding from both social and commercial investors. The due diligence laid the groundwork for a long-term partnership and positioned BAV as one of Indonesia’s fastest-growing microfinance institutions.

Opportunity International Australia (OIA) commissioned the project.