MICRA performs specialized MFI appraisals and ratings – using The PRIME rating tool – on behalf of MFIs, donors, investors, and government. These services provide independent expert evaluation and verification of individual MFI performance, based on international microfinance best practice and Indonesian commercial banking reporting norms. 

The PRIME rating tool, appraisal tool and Investor Report were developed by MICRA staff in cooperation with IFC PENSA specifically for the Indonesian market over the course of the joint IFC PENSA/Mercy Corps Commercial Linkages Pilot Project. The tools are based on national and international standards, providing
information for the national banking industry, as well as international investors

The rating tool lends itself well to a range of purposes and can be quickly adapted to different client needs. The ultimate PRIME product is the full rating, which is typically conducted by two analysts over a period of two to three field days, with an additional two to three days required for advance preparation and report
finalization, depending on the size of the MFI. However, the following additional products and services are also offered:

  • Full Appraisals (does not include financial or portfolio audit)
  • MFI Desk Reviews (covering financial statements, business plans, etc.)
  • Rapid Institutional Appraisals (1 field day for two analysts)
  • Technical Assistance Needs Assessment
  • Commercial Funding Recommendations
  • Benchmarking
  • Research related to aggregated rating findings
  • Social rating

Ratings typically result in an Investor Report, which provides detailed information and statistics on MFI operational, financial and strategic performance. MICRA also conducts shorter MFI Appraisals, which do not include financial verifications, but give a comprehensive picture of institutional operations and performance and are often as the basis for future technical assistance or establishing new partnerships.

Since September 2005, MICRA has conducted more than 400 rating activities from 2005 until now covers Jakarta, West Java, East Java, Banda Aceh, Central Java, Lampung, Maluku, North Sumatra, NTT, South Sulawesi, and Bali on behalf of donors, investors, commercial banks, government, INGOs and MFIs. Ratings have been
conducted with all legal forms of microfinance institutions, including community banks (BPR) and Syariah BPR, foundations, cooperatives, credit unions, BMT, Baitul Qiradh and other forms of MFIs. Ratings have facilitated commercial investment, subsidized and grant funding, technical assistance arrangements, and the development of strategic partnerships and microfinance policy initiatives.