Commercialization of Microfinance - Indonesia

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.

[Author's Abstract]