FINANCIAL EDUCATION TO
INCREASE FINANCIAL ACCESS
Mr. Y. Santoso Wibowo
Directorate of Credit, Rural Bank and MSME
Bank Indonesia
Bali, July 2011
ACCESS TO FINANCE IN INDONESIA
13.33%
Below
Poverty
Line
99.91%
MSME
Entrepreneur
64.25%
60%
Living
in Rural
Area
Without
access to
bank
60-70%
MSMEs that
have not
been linked
to bank
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MSME’S PROBLEMS TO ACCESS TO FINANCE
Access to formal financial services still become constraints to majority people in
Indonesia, including MSME.
 World Bank’s Survey shows that
community who have access to
formal financial services is 52%.
Access to Financial Services
 Communities who lived outside java
have smaller access to financial
services.
Sumber: World Bank (2009)
Community who have access to financial services
Population who don’t have access
Sumber: World Bank (2009)
3
BANK INDONESIA HOUSEHOLD SURVEY 2010 : Savings
Save at Non Bank
Financial Institution
3,75%
Savings
38,35%
Without
savings
61,65%
Save at Banks
34,60%
BI’S PROGRAMS :
LET’S GO TO THE
BANK
MY SAVING
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BI HOUSEHOLD SURVEY 2010 : Credit
With loans
40,92%
Without loans
59,08%
Banks
18,25%
Source
of loan
Non Banks &
Non MFIs
66,28%
Rural
Banks
3,14%
MFIs
12,33%
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FINANCIAL INSTITUTION FOR MSME
Saving and Loan
Cooperatives
Pawnshop
Other NBFI such
as: leasing
company,
multifinance,
LPDB
Rural Bank*
B
A
N
K
Commercial
Bank
MSMEs
(52,8 millions business
units)
Non Bank non
Cooperatives MFI,
Such as
BMT/LDKP/LPD/BK
K/LPK
N
o
n
B
a
n
k
Finance both
MSME and
corporate
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GAP BETWEEN BANKS AND MSMEs
Scale Gap
Gap between the loan size expected by banks
and the loan size needed by MSMEs,
especially micro enterprises
BANK
Formalization gap
Gap between bank’s requirements for formal
documents, such as formal business license,
property ownership, NPWP (tax number)
versus the ability of MSME to fulfill the
requirements.
Information Gap
SME
Gap of information between bank products
and procedures and the MSMEs knowledge
about them.
7
BI’S POLICY IN MSME DEVELOPMENT
The purpose of BI policy:
• At the supply side is to increase bank’s
credit to MSME
• At the demand side is to help increase
the eligibility and capability of MSME
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Research
Training
Demand Side
BI’S POLICY IN MSME DEVELOPMENT
Information
Provision
Infrastucture
development
SME’s
access to
finance
Growth of
SME/Real
Sector
Supply Side
Regulation
Cooperation with
Government &
Other Institutions
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DEMAND SIDE POLICY
Research
To support BI policy and strategy
Training
To increase bank’s expertise in
MSME lending, BDSP’s skill in
assisting MSME and MSME access
to finance
Information
provision
To disseminate research output to
stakeholders
• Lending model
• provincial-based potential commodity
• Other related topics
• Training to banking officers
• Training to business development service
providers (BDSP) in assisting MSME
• Cluster development
• Online information - DIBI (Indonesian Data
and Business Information)
• Workshop, seminar, road show
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TRAINING
The purpose of training:
– To enhance the knowledge, capability and to encourage
bank and Financial Institution for MSME to give loan to
MSME
– To enhance the knowledge and capability of Business
Development Service Provider (BDSP) in order to facilitate
MSME access to finance and become Bank’s partner in
developing MSME through loan monitoring and evaluation.
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TRAINING cont’d…
Participants of training:
–
–
–
–
Commercial bank and Rural bank officers
Officers from other Financial Institution for MSME
Business Development Service Providers (BDSP)
Government officers involved in assisting and developing
MSME
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TRAINING cont’d…
Training topic
A. For Bank and Financial Institution :
-
MSME business strategy
Survey of MSME Potential business with Rapid Rural
Appraisal (RRA) Method
Credit Analysis for MSME
How to handle non-performing loan
How to disburse loan to group of debtors with Self Help
Group scheme
B. For BDSP :
Financial aspect including business feasibility (credit proposal)
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TRAINING cont’d…
Training performance (as of year 2010)
TRAINING
LINKAGE TO
BANKS
:
:
Number of
Trainings : 41
Number
of Active
BDSP :
585
Number
of MSME :
7.935
Number of
Participants : 1.221
Number
of Banks :
170
Total
credit
disbursed:
384.8
billion IDR
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TRAINING cont’d…
Cooperation Bank Indonesia with other
ministries:
Ministry of Cooperative and SME : BDSP for MSME
Ministry of Agriculture : BDSP for Farmer
Ministry of Marine Affairs and Fisheries : BDSP for
fisher men
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INFORMATION PROVISION
DIBI (Indonesian Data and Business Information)
www.bi.go.id
A. Purpose of DIBI
Regional
Government
Information on research, study and survey of Bank
Indonesia on various sector and industry related with
potential regional economy development
Entrepreneur
Recognizing opportunity/expansion, characteristic
and business profile in national and regional level and
also directing regional industry to grow and develop
based on potency and uniqueness
Banking
To support Bank Analysis
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INFORMATION PROVISION cont’d…
A. Content of DIBI
1. Information for Entrepreneur :
- priority commodity
- funding scheme
- MSME’s empowerment
- bank’s service and MSME data)
2. Information for Exporter :
- export commodity profile
- export regulation
- export data
3. Information for Banker :
- MSME credit report
- MSME credit statistic
- MSME data
4. Information for Public :
- regional economy study
- real sector study
- publication
- bank’s service and MSME data)
5. Link to other Website
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THANK YOU
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