Indonesia Market Study : Movable Assets-Based Financing to Micro, Small, and Medium Enterprises

International Finance Corporation

International Finance Corporation, Washington, DC

关键词: small and medium-sized enterprises;    microfinance;    access to finance;    finance market;   

RP-ID  :  109548

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

The report aims to assess the currentmarket for movable assets based lending with respect tomicro, small and medium enterprises (MSMEs) in Indonesia.The sections of the report highlight the addressable demandfor MSMEs and the current supply provided by various formalsources of financing in Indonesia. Traditionally, financialinstitutions have preferred lending against fixed assetcollateral only. Using that as a starting point, the reportseeks to identify the current challenges in lending againstmovable assets. It further extends the need for a greaterfinancial infrastructure that can facilitate the ability oflenders to evaluate risks in movable assets based lending.This report delves into the lending challenges faced byMSMEs as well as the challenges that restrict greater supplyof credit by financial institutions. It draws on data andinsights based on discussions with over 70 financialinstitutions in Indonesia, and an understanding of thecredit requirements of MSMEs – based on over 850 samplecases for quantitative data. These findings were furtherexamined through in-depth qualitative discussions with 34MSMEs spread across multiple regions in Indonesia. As theIndonesian economy follows a traditional model of providingcredit based on fixed collateral, such as land andbuildings, the study focuses on: (i) understanding thecurrent credit demand that can be potentially addressed bymovable assets to complement the traditional model, and (ii)the challenges that need to be addressed to facilitate theensuing movable assets based lending.