Commercialization of Microfinance - Indonesia

Publication Date: Nov 2003
Published by: Asian Development Bank (ADB)
Document Type: Paper

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To what extent has Indonesia's microfinance sector progressed towards commercialization, and what have been the implications of this development?

This study is the fourth of a series of publications resulting from a regional technical assistance project on commercialization of microfinance. The series comprises four country reports (on Bangladesh, Indonesia, Philippines, and Sri Lanka) and a regional report on perspectives on commercialization from South and Southeast Asia.

This report

• analyzes the progress toward commercialization of Indonesia's highly diversified and predominantly formal microfinance industry;
• explores the implications of commercialization and the remaining challenges to expanding outreach on a sustainable basis
• recommends positive approaches to the expansion of commercial microfinance while preserving the traditional social objective of MFIs of expanding access of the poor to demand-driven, sustainable financial services.