| ID | 180545 |
| Title Proper | Indonesia's Ultra Microcredit Programme |
| Other Title Information | Financing Micro Businesses, Empowering the Poor |
| Language | ENG |
| Author | Adam, Latif ; Latif Adam, M. Soekarni, Ika Inayah ; Inayah, Ika ; Soekarni, M |
| Summary / Abstract (Note) | This paper examines the Indonesian government's new microcredit programme, the Ultra Microcredit (UMi) scheme, designed to provide cheap, hassle-free loans to micro businesses (MBs) owned by the poor and vulnerable. Based on UMi's loan disbursement, the number of participating non-bank financial institutions (NBFIs), the number of borrowers and its impact on the borrowers' business performance, this paper shows that the programme has so far been significantly promising in supporting the development of MBs. This study not only highlights the ways in which UMi has addressed various problems that MBs face, but also details the scheme's limitations in achieving its large-scale anti-poverty objectives. The results show that UMi's main policy challenges can be overcome by: first, shifting its distribution away from Jakarta and towards the less prosperous provinces of the country; second, improving business facilitation services; and third, complementing the scheme with other non-financial programmes. |
| `In' analytical Note | Journal of Southeast Asian Economies (ASEAN Economic Bulletin Change the Name ) Vol. 38, No.2; Aug 2021: p.263-280 |
| Journal Source | Journal of Southeast Asian Economies (ASEAN Economic Bulletin Change the Name ) 2021-08 38, 2 |