Full Knowledge Base

The Importance of Microfinance for Development of MSMEs in ASEAN: Evidence from Indonesia

Resource type
Author/contributor
Title
The Importance of Microfinance for Development of MSMEs in ASEAN: Evidence from Indonesia
Abstract
Despite studies on microfinance (MF) or development of microfinance institutions (MFIs) in Asia developing countries, including countries as member states of the Association of Southeast Asian Nation (ASEAN), are growing, not so much attention have been given to the role of MF in financing micro, small and medium enterprises (MSMEs). Based on a key literaturestudy and analysis of secondary/national data, the main aim of this study is to fill this gap. It shows that in many ASEAN member states (AMS) MF has developed to some significant degree, although the rate of growth (e.g. number of MFIs, number of depositors and debtors, total loans allocated, etc.) as well as the market structure of MF vary across member states. From the Indonesian case this study comes with two most interesting facts. First, majority of MSMEs do not have access to credit from banks and/or other formal non-bank financial institutions. Second, MF services or MFIs are growing fast, and the most popular MF program so far is Kredit Usaha Rakyat (KUR), or people business credit (i.e. a credit scheme without collateral), introduced during the SBY period
Publication
Journal of ASEAN Studies
Volume
2
Issue
2
Pages
80-102
Date
2014
Language
English
Accessed
24/11/2020, 15:31
Extra
Number: 2
Citation
Tambunan, T. (2014). The Importance of Microfinance for Development of MSMEs in ASEAN: Evidence from Indonesia. Journal of ASEAN Studies, 2(2), 80–102. https://doi.org/10.21512/jas.v2i2.298
Language / Linguagem