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USAID Support for Financial Inclusion in Indonesia

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11 diapositives · 132 Views · Nov 18, 2019

USAID supports financial inclusion in Indonesia through loan guarantees, Islamic financing, and branchless banking. The aim is to demonstrate the profitability of underserved sectors, provide technical assistance to both borrowers and lenders, and promote access to financial services for women-managed businesses, micro and SMEs, and agri-businesses.

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USAID Support for Financial Inclusion in Indonesia
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  1. USAID Support for Financial Inclusion in Indonesia • Loan Guarantees • Islamic Financing • Branchless Banking

  2. USAID Loan Guarantee Program • USAID jointly works with banks to identify underserved sectors and share risk • Micro and SME, Women- managed businesses, agri-businesses • Technical assistance is provided to borrowers and lenders • Aim is to demonstrate profitability of neglected sectors

  3. Impact of Loan Guarantees in Indonesia We currently have six guarantees in place valued at USD 100 million • Bank Danamon: $16 M, SMEs in Aceh, 9,605 loans • Bank Danamon 2: $35 M, new lending to Ag sector • Bank Andara: $13 M, 104 loans to MFIs • Bank Andara 2: $3 M, just started lending to Ag sector • MBK: received loans from 3 banks valued over $8 M • Standard Chartered: $20 M, 126 loans made to SMEs

  4. Support for Islamic Financing USAID signs agreement with Bank Muamalat • The first USAID loan guarantee to support Islamic Financing in the world • Guarantee USD 2.7 million to MitraBisnisKeluarga

  5. USAID Research on Zakat • USAID commissioned a study on Zakat to: • Assess potential size and growth • Understand how OPZs function • Findings and recommendations: • Poor organization • Low public awareness • Limited standards and oversight • Regulatory improvements for transparency and poverty alleviation

  6. Support for Mobile Financial Services (MFS) • Regulatory and Government coordination support • Analysis of current policies/regulations • Assist in mapping and coordinating Ministries’ role in supporting MFS • Help learn from Int’l best practices • Develop plans for pilot programs • Grant fund to catalyze Private Sector investment • Training to agents and bank lenders • Financial literacy • Monitoring and learning from pilot programs

  7. Mobile Money Continues to Expand Globally • Source: GSMA Mobile Money Deployment Tracker • http://www.wirelessintelligence.com/mobile-money/unbanked

  8. Mobile Financial Services to Reach the Poor Mobile Telephone versus Bank Penetration in Indonesia Potential for Financial Inclusion Using Mobile • Reduced costs • Convenient and understood channel for unbanked and under banked populations • Provides reach into rural areas • Time savings, security, and transparency • More than just banking services Source: GSMA, Telkomsel, Indosal, PT XL, Axis, BI

  9. USAID’s Potential Areas for Support in Indonesia

  10. Moving Mobile Money/Banking Forward • Ground-breaking mobile money programs have enabled people from Kenya to the Philippines to access financial services for the first time. • "The concept works. Now it's time to take it out of the lab and into the mainstream. There is tremendous potential for innovative delivery channels to reach the 2.7 billion people who have no access to affordable financial services.” • TilmanEhrbeck, CGAP's Chief Executive Officer

  11. Contact Information Brian Dusza bdusza@usaid.gov +62811 910 8216 Websites: www.Indonesia.usaid.gov