Indonesia

A single regional common market of Association of Southeast Asian Nations, or Asean, countries known as the Asean Economic Community will go into effect in 2015 for its founding members — Indonesia, Malaysia, the Philippines, Singapore and Thailand — and in 2020 for the remaining member states of Brunei, Cambodia, Myanmar, Laos and Vietnam.

Under the AEC, there will be free flow of goods, free flow of services, free flow of investment, free flow of capital and free flow of skilled labor among Asean member nations.

The International Finance Corporation (IFC), a member of the World Bank Group, signed a loan agreement today for up to US$75 million with Bank Danamon.

The loan will fund lending and help create business opportunities for Indonesian small and medium enterprises (SMEs), which are crucial contributors to the country’s economic growth but have limited access to finance.

The International Finance Corporation (IFC), a member of the World Bank Group, signed a loan agreement today for up to US$75 million with Bank Danamon.
The loan will fund lending and help create business opportunities for Indonesian small and medium enterprises (SMEs), which are crucial contributors to the country’s economic growth but have limited access to finance.

The government needs to provide small and medium enterprises (SMEs) with business facilities and incentives in return for their tax contributions, says the Indonesian Chamber of Commerce and Industry (Kadin).

Kadin deputy chairman for SMEs Erwin Aksa said most small- and medium-scale businesspeople had often faced difficulties in attaining banks loans for expansions.

Aksa said rewards from the government in the form of soft loans might lure other businesspeople to comply with the government’s tax policy.

This presentation goes over the following points:

• The role of MSMEs in the economy
• Main problems of the MSMEs
• Role of BI in MSMEs access to finance
• Case study: Embroidery and apparel cluster development - value chain and access to capital for woman self owned businesses

The Government of Indonesia requested MCC to conduct a gender vendor survey.
The aim of this survey is to examine gender-based barriers facing firms that wish to participate in government procurement and to identify key actions that can help level the playing field and improve the ability of both male and female enterprises to successfully compete for contract opportunities.

Women-owned businesses represent 60 percent of the total micro, small and medium enterprises (MSME) in Indonesia, offering an important contribution to Indonesia's economic growth. With so many women working in the MSME sector in Indonesia, access to credit for businesswomen becomes an important issue to consider. Although Indonesian laws regarding borrowing (formally) do not discriminate women, some women business owners say it is still difficult for women to access formal credit.