Expanding Access to Finance for Small-Scale Businesses : Secured Transactions Reform--An Indonesia Case Study

A lack of access to finance has been one of the biggest impediments to the development and growth of the small-scale business sector in Indonesia. While micro, small and medium-sized enterprises (MSMEs) account for almost all employment in Indonesi...

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Main Author:	World Bank Group
Format:	Brief
Language:	English en_US
Published:	World Bank, Washington, DC 2017
Subjects:	access to finance small and medium-sized enterprises microenterprises microfinance MSME SME secured transactions credit collateral
Online Access:	http://documents.worldbank.org/curated/en/319231483698846837/Expanding-access-to-finance-for-small-scale-businesses-secured-transactions-reform-an-Indonesia-case-study http://hdl.handle.net/10986/25826

id	okr-10986-25826
recordtype	oai_dc
spelling	okr-10986-258262021-05-26T09:05:20Z Expanding Access to Finance for Small-Scale Businesses : Secured Transactions Reform--An Indonesia Case Study World Bank Group access to finance small and medium-sized enterprises microenterprises microfinance MSME SME secured transactions credit collateral A lack of access to finance has been one of the biggest impediments to the development and growth of the small-scale business sector in Indonesia. While micro, small and medium-sized enterprises (MSMEs) account for almost all employment in Indonesia (97 percent), the sector as a whole accounts for just about 57 percent of Gross National Product. Surveys suggest that one of the main constraints on the growth of the sector is a lack of access to finance, with almost half of Indonesian MSMEs citing access to finance as the top constraint to business growth. In 2012 the World Bank Group (WBG), in partnership with Switzerland and Japan, engaged with the Government of Indonesia to improve access to finance for the small-scale sector by enabling the use of movable collateral for formal lending. The use of movable collateral, such as vehicles, machinery, equipment, inventory or livestock, make it possible for enterprises and individuals who lack fixed collateral, such as land and property, to access finance. It also supports the growth of the financial sector, as it promotes portfolio diversification. This case study shows how the World Bank Group’s specialist team in Indonesia engaged with the government to promote an enabling environment and develop a sound secured transactions infrastructure to increase access to finance for the MSME sector. 2017-01-10T16:25:50Z 2017-01-10T16:25:50Z 2017-01-05 Brief http://documents.worldbank.org/curated/en/319231483698846837/Expanding-access-to-finance-for-small-scale-businesses-secured-transactions-reform-an-Indonesia-case-study http://hdl.handle.net/10986/25826 English en_US Finance in Focus; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Brief East Asia and Pacific Indonesia
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	access to finance small and medium-sized enterprises microenterprises microfinance MSME SME secured transactions credit collateral
spellingShingle	access to finance small and medium-sized enterprises microenterprises microfinance MSME SME secured transactions credit collateral World Bank Group Expanding Access to Finance for Small-Scale Businesses : Secured Transactions Reform--An Indonesia Case Study
geographic_facet	East Asia and Pacific Indonesia
relation	Finance in Focus;
description	A lack of access to finance has been one of the biggest impediments to the development and growth of the small-scale business sector in Indonesia. While micro, small and medium-sized enterprises (MSMEs) account for almost all employment in Indonesia (97 percent), the sector as a whole accounts for just about 57 percent of Gross National Product. Surveys suggest that one of the main constraints on the growth of the sector is a lack of access to finance, with almost half of Indonesian MSMEs citing access to finance as the top constraint to business growth. In 2012 the World Bank Group (WBG), in partnership with Switzerland and Japan, engaged with the Government of Indonesia to improve access to finance for the small-scale sector by enabling the use of movable collateral for formal lending. The use of movable collateral, such as vehicles, machinery, equipment, inventory or livestock, make it possible for enterprises and individuals who lack fixed collateral, such as land and property, to access finance. It also supports the growth of the financial sector, as it promotes portfolio diversification. This case study shows how the World Bank Group’s specialist team in Indonesia engaged with the government to promote an enabling environment and develop a sound secured transactions infrastructure to increase access to finance for the MSME sector.
format	Brief
author	World Bank Group
author_facet	World Bank Group
author_sort	World Bank Group
title	Expanding Access to Finance for Small-Scale Businesses : Secured Transactions Reform--An Indonesia Case Study
title_short	Expanding Access to Finance for Small-Scale Businesses : Secured Transactions Reform--An Indonesia Case Study
title_full	Expanding Access to Finance for Small-Scale Businesses : Secured Transactions Reform--An Indonesia Case Study
title_fullStr	Expanding Access to Finance for Small-Scale Businesses : Secured Transactions Reform--An Indonesia Case Study
title_full_unstemmed	Expanding Access to Finance for Small-Scale Businesses : Secured Transactions Reform--An Indonesia Case Study
title_sort	expanding access to finance for small-scale businesses : secured transactions reform--an indonesia case study
publisher	World Bank, Washington, DC
publishDate	2017
url	http://documents.worldbank.org/curated/en/319231483698846837/Expanding-access-to-finance-for-small-scale-businesses-secured-transactions-reform-an-Indonesia-case-study http://hdl.handle.net/10986/25826
_version_	1764460246987702272

Expanding Access to Finance for Small-Scale Businesses : Secured Transactions Reform--An Indonesia Case Study

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