Report Regional Microfinance Development Project NTB The MFI Survey

This survey has three specific purposes:

• To provide information about the origin, extent and quality of existing supply of institutional microfinance services in Nusa Tenggara Barat (NTB), Indonesia;
• To learn the key characteristics of the household (and micro-enterprise) demand for financial services and identify demand-supply gaps;
• To investigate perceptions of the microfinance supply by the demand side.

The survey analyzes:

• Secondary and primary data concerning the current market (supply and demand) of microfinance services in the province;
• The microfinance system in NTB province;
• The microfinance institutions (MFIs)and their characteristics in terms of institutional origin, ownership, governance and services;
• The performance of the MFIs in the areas of savings and loan services, operational efficiency and sustainability, officer perceptions regarding servicing the poor.

It concludes that:

• The microfinance system comprises bank and non-bank institutions in the formal sector and various forms of informal sources;
• There are twelve types of MFIs;
• The national legal framework recognizes only rural banks and cooperatives;
• The majority of MFIs originate from social development programs;
• The ownership of cooperative MFIs can be problematic and this often results in problems of governance;
• While most MFIs are fully financial institutions, a few of them also have other business activities;
• Service performance of MFIs varies widely among types and among individual MFIs.