2011/GFPN/WKSP/024 Session 7 Micro Finance and Gender Equity in Indonesia Submitted by: Indonesia Workshop on Microfinance Best Practices Ha Noi, Viet Nam 7-8 April 2011
MINISTRY OF WOMEN EMPOWERMENT AND CHILD PROTECTION REPUBLIC OF INDONESIA 2011 productivity 1
processing marketing discussing, borrowing, buying 2
Introduction: Micro, Small and Medium Enterprises in Indonesia Most of the population live from their hi own business activities, female 33.3% and male 86%. Data of Enterprises (Ministry of Co operatives and SMEs, 2010): Total 52,768,280 enterprises Micro enterprises 98,88% 88% (52.176.795 795 units) Small enterprises 1,04% (546.675 units), Medium enterprises 0,08% (41.133 units) Big enterprises 0,01% (4.677 units) Introduction MSM enterprises contribute up to 56.53% of Gross MSM enterprises contribute up to 56.53% of Gross Domestic Product More than 50% micro enterprises are owned by women Around 97.3% of labour force works in micro enterprises and 70% of them are women Most women owned micro enterprises are not registered in statistics 3
BPR (Rural banks), approx. 1,851 units Bank Microfinancial units of commercial banks, 264,175 units FMI Formal Village banks, 5,345 units KSP/USP (Savings and Loan Cooperatives), approx. 36,485 units Perum Pegadaian (Pawnshop), 3,297 outlets Non Bank LDKP (Village Fund and Credit Institutions), approx. 2,001 units Informal Lembaga Swadaya Masyarakat (LSM/NGO) PHBK (Self Help Group) BMT (FMI with Islamic Principles) Introduction continued Women owned MFI : Mostly informal, self help groups in almost all villages as part of traditional activity such as arisan, simpanan bajapuik, kencleng, or part of Family Welfare Movement, Family Planning Programme, and other affirmative action programmes Savings and loan women s groups, as part of the Poverty Alleviation Programme (PNPM Mandiri), 20.357 groups Women s Cooperatives, 1,256 units (it has increased to more than 3,000 units) 4
Introduction continued Obstacles of women-owned Micro Enterprises Limited access to market and technology information Limited access to finance and capital Limited access to improve local human resources Lack of management and networking Lack of gender sensitivity in the community A. Improved access to finance Ministry of Cooperatives and SMEs has facilitated access to credit through cooperatives, particularly women s cooperatives. In 2005-2009 1,000 women s cooperatives received Rp 100 million for revolving fund. MoU between Ministry of Women Empowerment and Child Protection and Perum Pegadaian (Pawnshop) has promoted women-owned micro enterprises access to finance without collateral. Increasing number of MFI and a program of Micro and Small Economic Activity Empowerment, People Business Credit or Kredit Usaha Rakyat (KUR), that guaranted by the Government in particular for a credit of Rp 5 millions and less without any additional collateral condition. 5
Affirmative action for poor women Women Empowerment in Local Economic Development Project (Proyek Pemberdayaan Perempuan dalam Pengembangan Ekonomi Lokal P3EL) Integrated Programme for Enhancing the Role of Women towards Healthy and Prosperous Families (Peningkatan Peranan Wanita Menuju Keluarga Sehat Sejahtera P2WKSS) Village of Self Reliant and Progressive Women (Model Desa PRIMA): Pilot Project number of women s MFI which are supported by poverty alleviation programme, has increased from 112.779 to 189.888 units total activities has yield Rp 334 billion in 2009 have encouraged voluntarily investment up to Rp 5,5 billion PNPM, 2009 6
B.Better access to product markets: Empowering women to compete Promotion of products each year in different themes and occasions, supported by the Ministry of Trade, Ministry of Industry, Ministry of Cooperatives and SMEs, as well as Board of Commerce. Training on packaging, branding, quality control, product management Encouraging the establishment of Business Development Service Providers Encouraging eco- and green production Better access to product markets: Empowering women to compete Networking amongst women owned micro enterprises allowing a collaboration and cooperation; Introducing the use of technology and information such as computer and access to internet; Encouraging the establishment of women s co operatives among women owned micro enterprises in order to get easy information and access to markets. 7
C. Enabling environment: Make markets work for women Gender mainstreaming through planning and gender budgeting in sector policies Ministry of Women Empowerment and Child Protection has introduced planning and gender budget policy to 15 sectors, including cooperative and SMEs, trade and industry, and to several Women Empowerment and Family Planning Agencies at provincial level. Ministry of Finance and Ministry of National Development Planning have introduced a policy on gender budget to mainstream gender issues in all sectors. Enabling environment: Make markets work for women Forum on Women in Economy Ministry of Women Empowerment and Child Protection is able to facilitate a forum consisted of sectors, NGOs, academics, business entities and community for exchange information; Allowing sectors to understand problems, access of information and possible cooperation; Allowing micro enterprises to express their opinion, discuss their problems and opportunity to market their products. 8
Enabling environment.. Evaluation to all regulations for gender bias; Ministry of Women Empowerment and Child Protection has continued to evaluate regulations for gender bias; Ministry of Coordination on People s Welfare has encoouraged to revise banking regulations that limit access to credit to women and, micro and small businesses 17 9