Suchergebnisse

The interventionist rationale of economic policy-making in Indonesia was already laid down in the 1945 constitution, but only the abundant oil revenues during the oil boom period between 1973 and 1982 enabled the government to realize the envisaged state-led model of development. In order to channel revenues to domestic industries, state enterprises and cooperatives, the government strengthened the position of state banks vis-à-vis the private sector. By 1982, state banks accounted for 80% of total banks assets and 85% of total bank credit. The central bank established a system of 32 subsidized liquidity credit programs at controlled interest rates. More than 90% of liquidity credit, which made up almost half of the total loan amount disbursed during the oil boom period, were channeled through state banks. By 1982, small-scale credit accounted for almost one quarter of the total loan amount channeled through subsidized liquidity credit programs. The rural financial system was virtually closed for the private sector. Bank Rakyat Indonesia (BRI) was instructed to establish an extensive network of village units for the implementation of the subsidized credit programs.

Indonesia, a member of the G20 since 2008, has become one of the largest economies worldwide with the promise of substantial growth potential in the coming decades. In order to realize this potential, the government of Indonesia has identified the role of the Micro, small and medium enterprise sector as pivotal to promoting growth, creating jobs, and alleviating poverty. This joint International Finance Corporation (IFC) study on Women-Owned Small and Medium Enterprises (SMEs) in Indonesia makes a significant contribution in understanding women's economic empowerment in the country by presenting a comprehensive analysis that captures original data. More than half of Indonesia's SMEs are owned by women. And even though businesses run by women and men should in theory contribute equally to economic growth, the reality is that women face many more constraints in starting and growing their businesses, including obtaining business finance. This study intends to inform the government, private and state-owned banks, and the international community about the constraints faced by small businesses, particularly those owned by women. Additionally, the objective is to establish a business case for banks to help them realize the growth opportunity and contribute to their profitability by servicing this sector. It is clear from this report that significant reform will be necessary to improve both the business enabling environment for women and more importantly, to increase their access to finance. This book is arranged as follows : Following introduction, Chapter 2 provides an overview of the SME sector and summarizes the key findings about the enabling environment. Chapter 3 discusses access to finance, and the supply and demand of bank loans for SMEs and women-owned SMEs, Chapter 4 focuses on specific challenges, patterns of access, usage and demand for financial services by women-owned SMEs. Chapter 5 provides recommendations for the government, Bank Indonesia and banks in general, and Chapter 6 draws conclusions.

ABSTRACTLocal financial institutions can play a crucial role in reducing income inequalities at the within‐country level by promoting inclusive economic growth and development across time and space. This is against a backdrop of increasing financial and economic fragility, to which emerging economies have also been exposed over more recent decades and years. This article adds emerging economy evidence from Brazil to an empirical literature on the income inequality implications of cooperative financial institutions. Panel‐data estimations for 2004‒19 reveal that Brazilian credit cooperatives have gone beyond commercial banks in supporting communities that have traditionally been underserved financially. Additionally, the article provides new evidence and insights on credit cooperatives' resilience in the context of a relatively recent but severe economic crisis in Brazil. The results indicate that credit cooperatives have helped fill gaps in finance and economic opportunity that tend to arise in an emerging economy setting. Furthermore, the contribution of credit cooperatives in filling these gaps is found to be more significant at lower levels of development. These findings add theoretical and, importantly, empirical support to the relationship channel of financial inclusion, which is in line with the optimistic perspective in this debate.

The Lembaga Perkreditan Desa (LPD) in Bali are the most recent form of local finance in Indonesia. Their establishment was initiated by the provincial government of Bali after several studies on local financial institutions in Indonesia had been presented at a seminar carried out by the Ministry of Home Affairs in 1984. By 1992, the government had established 650 of the 1,600 LPDs planned to be set up in each desa adat (custom village).

Examines the influence of the International Monetary Fund (IMF) and European Union (EU) on governments' policy-making autonomy; Russia, Bulgaria, and Czech Republic; 1990s.

This book examines the opportunities opened up for financial cooperatives by the recent financial crisis, and explores the role of these institutions in promoting and sustaining local development. The global financial crisis has not only shown the limits of the mainstream theory of markets and rational expectations, but has also generated a great deal of disillusionment with the banking system and underlined the importance of a healthy society for the welfare of the individual. Consequently, new and innovative ways of providing finance are needed, especially for strengthening the developmen.