Sharing Experience: Easing Access of SMEs to Finance Agriculture Sector

Indonesia shared its experiences on easing access of SMEs to financing in the agricultural sector through the Nusantara Jaya Cooperative and business development service provider (BDSP)

Indonesia Micro-Financing Best Practice: The “Perkassa” Program

The Perkassa Program was an Indonesian government micro-financing program started in 2007. It was designed to alleviate poverty and provide access to SME financing by strengthening women’s cooperatives through a shared capital revolving fund. The government funded the program, but used banks as a conduit. The program targeted women’s cooperatives in agriculture, agro-industry, manufacturing, trade and services.

Building Clients Capability, Management, Entrepreneurship and Innovation: BRI Experience

Indonesia faced many challenges because of its diverse population, which made it especially difficult for SMEs to get access to finance. Indonesia had thus experimented with microfinance to alleviate this issue, giving micro-loans and credit to SMEs. These initiatives brought about results because of several key success factors, including making microcredit highly accessible and ensuring that lending institutions cover their own costs and become sustainable.

Financial Inclusion and MSME Programs in Indonesia

In the presentation, Indonesia pointed out that distribution of wealth was not equal throughout it diversified land mass and population. MSMEs in Indonesia were prevented from growing because of access to finance issues. Initiatives were underway to increase the engagement of low-income communities in entrepreneurial activities. The initiatives for financial inclusion and MSME development were conducted through 6 pillars, namely financial education, public financial facility, mapping on financial information, supporting policy and regulation, intermediary/distribution facility and consumer protection

Financing MSME: Accessibility is the Key

Indonesia reported on its Bank BRI, a financial institution that specializes in small-scale and microfinance. BRI had commitment to focus on banking services to MSMEs. This commitment was reflected in the allocation of loan for the

MSMEs which is about 70% of its total loan portfolio.

Promoting Financial Inclusion and Literacy among SME – Indonesian Experience

Financial literacy survey conducted in Indonesia, showed that the level of financial education increased the financial literacy and eventually increased the awareness to use formal financial services and products. Financial education required a strong commitment among parties (government and private institution) and the most important thing is coordination and collaboration among institution.

Bank Rakyat Indonesia’s Infrastructure Development for Financial Inclusion

Indonesia made a brief presentation highlighting the Bank Rakyat Indonesia’s (BRI) financial initiatives in Indonesia, including the first bank satellite, which would be launched by bank BRI in the near future, to provide financial outreach to all of Indonesia.

Improving Financial Literacy of SMEs Through National Movement for Financial Transaction Records

SMEs are particularly constrained by limited access to finance. One of these obstacles is a lack of financial information obtained by creditors. The Indonesian National Movement for Financial Transaction Records is one of the main strategies used to promote the development of SMEs by providing them with a better understanding of the benefits of financial transaction records. The program also provides capacity building for SMEs so that they can record their financial transactions through ICT devices, such as personal computers, laptops, and mobile phones.

Bali International Consulting Group

The Bali International Consulting Group is a research, business consulting and integrated sustainable development company based in Bali, Indonesia.


Promoting Innovative Economy through APEC Co-Incubation Initiative

Promoting Innovative Economy through APEC Co-Incubation Initiative
Agenda Item: 11.3.2
ndonesia stated that business incubators were key tools for fostering private sector development through systematizing the process of assisting new technology-based business start-ups. As growing economies require continuous innovation, it was imperative to look for suitable opportunities overseas to be incubated in-house for common benefit. For that purpose, Indonesia proposed this initiative in order to further economic growth by fostering private sector development through the building of a common platform for entrepreneurship and an award/innovation competition for co-incubation.