Poverty Reduction Through Financial Inclusion
National Team for Acceleration of Poverty Reduction (TNP2K) Office of Vice President, Republik Indonesia
MARCH 2016
Elan Satriawan
• Indonesia has famously known as one success story in poverty
reduction: cut more than halved poverty during period 1976-1996.
• The crisis 1997/98 deviate the declining trend, but since early
2000, Indonesia was back on the trend until now
• Post 2000 trend in poverty reduction effort however has been
characterized by slowing down of the reduction and increase in
inequality
• While many ways can be done to address the two, financial
inclusion is one of the main effort
• Access to finance for the poor will arguably improve productivity
• Financial inclusion targeting the poor and vulnerable associates with more inclusive growth and development
• This will explain the situation on access to finance among the
poor and general society, what has been done, and what the
remaining challenges.
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Trend in Electronic/Digital Transactions
-100,000,000 200,000,000 300,000,000 400,000,000 500,000,000 600,000,000 700,000,000 800,000,000 900,000,000 2008 2009 2010 2011 2012 2013 2014
ATM + Debit Card Purchase ATM + Debit Card Intrabank Transfer
ATM + Debit Card Interbank Transfer
Credit Card Purchase E-money Transaction
All Society and the Poor Small and Micro Enterprises
General Society
20%
50%
Poor Small Ent.
12%
20%
Micro Ent.
Access to Formal Financial Services
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Using Cashless Services for Distribution of
Social Assistance Benefits.
Raskin Program Keluarga Harapan (PKH) Program Simpanan Keluarga Sejahtera (PSKS) Program Indonesia Pintar (PIP) Program Indonesia Sehat (PIS)
Kredit Usaha Rakyat (KUR)
15,5 mill HHs; Alocated budget IDR 21 T; under Kemenko PMK dan Kementerian Sosial
3,5 mill families; Alocated budget IDR 12 T; under Kementerian Sosial
15,5 mill HHs; Alocated budget IDR 9,3 T; under Kementerian Sosial
20,3 school age children; Alocated budget IDR 12,8 T; under Kementerian Pendidikan & Kebudayaan, Kementerian Agama 86,4 juta individuals; Alocated budget IDR 25,5 T; under
Kementerian Kesehatan dan BPJS Kesehatan
12,48 mill enterprises (11,4 Juta KUR Mikro); disbursed about 161,66 T; under Kemenko Ekonomi
Lainnya Eletricity subsidy, LPG Subsidy, Fertilizer Subsidy
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Bank
Industri Keuangan Non Bank (IKNB) Lembaga Keuangan
Syariah
118 Banks, 39.770 branches, 90.683 ATM 979 Non-Bank Financial Institutions
12 Bank Syariah, 22 convensional banks that own Syariah unit, 2.501 branches, 49 IKNB syariah,
Telco Use of celuler services has reached 95%, 3 Telco have been
granted permission to operate e-money
• Branchless banking
• Pilot project on branchless banking with 5 banks dan 2 telcos duringJune-November 2013
• Gerakan Nasional Non Tunai (GNNT)
• Officially launched on 14 Agustus 2014
• Layanan Keuangan Digital (LKD)/Digital Money Services
• BI Regulation on LKD was released on April 2014 • LKD agent has reached 54.817 (Februari 2016)
• Layanan Keuangan Tanpa Kantor dalam Rangka Keuangan
Inklusif (Laku Pandai)/Branchless Banking
• Regulation was released on November 2014
• Pre-Pilot Telko Operator
• With Telkomsel pre-piloting NFC to channel ‘unrestricted and restricted’ cash to 1.989 beneficiaries of PSKS during Desember 2015 dan Januari 2016
INITIATIVES TO PUSH CASHLESS
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• Program Keluarga Harapan (PKH)
• Pilot on distribution of PKH benefits using LKD through individual agents on Oktober 2014
• 1.860 beneficiaries in Cirebon, Pasuruan, Jakarta, and Kupang • BRI and Bank Mandiri as implementing banks
• Program Simpanan Keluarga Sejahtera (PSKS)
• Pilot on distribution of PSKS benefit using LKD through PT Pos Indonesia during November 2014-Maret 2015
• 1.023.553 beneficiaries PSKS in 19 Kabupaten/Kota • Bank Mandiri as implementing bank
• Program Indonesia Pintar (PIP)
• Pushing the use of virtual account, TabunganKu dan SimPel, as a way to distribute PIP benefits
• BRI and BNI as implementing banks
FINANCIAL INCLUSION RELATED INIATIVES
Improving Access to Credit for Micro
and Small Enterprises
11 | Category Number of enterprises % of enterprise Number of employees % of wokers employed
Micro and Small 22,515,794 99.03 41,656,198 83.87
Medium and Large 208,887 0.92 7,811,843 15.73
Not yet classified 12,107 0.05 202,126 0.41
TOTAL 22,736,788 100.00 49,670,167 100.00
Source: Economic Census 2006 (BPS)
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83.30 59.88 10.19 14.55 6.51 25.58 0% 20% 40% 60% 80% 100% Mikro Kecil Bank 24% Koperasi 6% Lembaga Keuangan bukan Bank 4% Modal Ventura 1% Perorangan 31% Keluarg a… Lainnya 24% Mikro Bank 28% Koperasi 2% Lembaga Keuangan bukan Bank 1% Modal Ventura 0% Perorangan 9% Keluarga 4% Lainnya 6% Total 50% Kecil
SOURCE OF CAPITAL AMONG MICRO AND SMALL
ENTERPRISES
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Sumber: BPS, Survei Industri Mikro dan Kecil (VIMK), 2014
13 Tidak tahu prosedur 10% Prosedur sulit 5% Tidak ada agunan 12% Suku bunga tinggi 7% Usulan ditolak 2% Tidak berminat 64%
Micro
Tidak tahu prosedur 4% Prosedur sulit 9% Tidak ada agunan 8% Suku bunga tinggi 15% Usulan ditolak 2% Tidak berminat 62%Small
REASONS WHY MICRO AND SMALL ENTERPRISES DO
NOT ACCESS CREDIT FROM BANKS
Almost 60% of micro enterprises and about 40% of small
enterprises do not have business development plan
59.3 39.69 16.57 27.25 1.78 4.34 20.32 26.75 2.02 1.96 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Mikro Kecil
Tidak Ada Penambahan Sarana Buka Cabang Baru Memperbaiki Kualitas Lainnya
Sumber: BPS, Survei Industri Mikro dan Kecil (VIMK)
PLAN FOR DEVELOPMENT AMONG
MICRO AND SMALL ENTERPRISES
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% of HHs have Access to Credit
9.65 11.43 12.27 13.08 13.84 13.97 13.64 14.35 13.02 11.34 0 2 4 6 8 10 12 14 16 1 2 3 4 5 6 7 8 9 10 Desil Pengeluaran Kredit Usaha, 12.66 Tidak menerima kredit usaha, 87.34 Source: Susenas 2015
INISIATIF YANG SUDAH DILAKUKAN
KREDIT
• Credit Rating
• Telah dilakukan Pilot Project, penelitian dan serangkaian sosialisasi terkait dengan pemeringkatan UKM.
• Perusahaan Penjamin Kredit Daerah (PPKD)/Regional
Credit Guarantee Agency
• Telah dilakukan fasilitasi dalam rangka pembentukan PPKD di beberapa daerah yang memungkinkan.
• Terdapat 16 PPKD yang didirikan di beberapa daerah.
• Kredit Usaha Rakyat (KUR)
• Penyaluran KUR dengan sasaran unbankable UMKM • 12,48 Juta Debitur (11,4 Juta KUR Mikro);
• 178,838 Triliun sudah tersalurkan (2007 – 2014)
• KUR TKI
• 2011 – 2014: Penyaluran sebesar 52,437 miliar rupiah, sebanyak 3.629 debitur
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PROGRAM KREDIT USAHA RAKYAT (KUR)
Disbursement of KUR 2007 s/d 2016
(Rp Miliar)
981 11,475 4,733 17,229 29,003 34,230 40,898 40,297 21,098 8,407 0 5000 10000 15000 20000 25000 30000 35000 40000 45000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 (s/d 12 Feb 2016) 4,468 (26 Jan – 12 Feb) 3,939 (1– 25 Jan)19
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Source: Susenas Q1 2011 dan Q1 2015
24%
Access to KUR among the poor and vulnerable increased during
period 2011-2015, but there are still big room to improve
0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 1 2 3 4 5 6 7 8 9 10 Desil Pengeluaran 2011 2015
KREDIT USAHA RAKYAT (KUR)
Does KUR Help? A Survey of KUR Beneficiaries
Sumber: Damayanti dan Adam (2015)
% of KUR Beneficiaries Reporting in Assets and Employment Improvement
62 68 100 100 67 67 50 100 100 0 67 33 67 50 100 33 100 100 67 67 100 34 29 25 33 0 33 50 33 67 33 0 67 67 50 100 67 0 33 100 100 100 0 10 20 30 40 50 60 70 80 90 100
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% of KUR Beneficiaries Reporting Additional Benefits of KUR
43 54 50 50 50 43 80 66 25 38 75 60 33 67 29 50 75 33 50 50 75 22 24 50 50 33 43 20 17 0 38 25 40 22 0 43 17 25 17 50 25 25 13 11 11 4 0 0 0 0 0 17 0 13 0 0 22 0 14 0 0 17 0 0 0 0 10 20 30 40 50 60 70 80
Percaya Diri Dalam Berusaha Jaringan Bisnis Lebih Luas Membantu Pemasaran Pengetahuan Pembukuan Sumber: Damayanti dan Adam (2015)
In 2015 and 2016, GoI changed KUR scheme from credit
guarantee to interest rate subsidy (with implicit guarantee)
2007-‐2014 2015 (s/d 12 Februari 2016)2016
Rata-‐rata plafon per nasabah
-‐ KUR MIKRO Rp 8,4 juta Rp 14,87 juta Rp 15,63 juta -‐ KUR RETAIL Rp 79,1 juta Rp 146,29 juta Rp 181,98 juta
Rata-‐rata jumlah debitur / bulan 212.841 orang 205.426 orang 255.077 orang
Its immediate impact is that in 2016, we observe expanding access to
KUR due to lower cost of fund
23 | ACEH SUMATERA UTARA SUMATERA BARAT RIAU JAMBI SUMATERA SELATAN BENGKULU LAMPUNG KEPULAUAN BANGKA BELITUNG KEPULAUAN RIAU DKI JAKARTA JAWA BARAT
JAWA TENGAHD I YOGYAKARTA JAWA TIMUR
BANTEN
BALI
NUSA TENGGARA BARAT
NUSA TENGGARA TIMUR
KALIMANTAN BARAT
KALIMANTAN TENGAH
KALIMANTAN SELATAN KALIMANTAN TIMUR
KALIMANTAN UTARA SULAWESI TENGAHSULAWESI UTARA
SULAWESI SELATAN SULAWESI TENGGARA GORONTALO SULAWESI BARAT MALUKU MALUKU UTARA PAPUA BARAT 0 20 40 60 80 100 0 10 20 30 40 50 60 70 80 90 100 1 2 3 4
% Villages with enterprise receiving KUR in a Province % Su b d is tr ic ts wit h p re s e n c e o f B a n k s in a pr ov inc e
Challenges 1: Wider Expansion Access to KUR
ACEH SUMATERA UTARA SUMATERA BARAT RIAU JAMBI SUMATERA SELATAN BENGKULU LAMPUNG KEPULAUAN BANGKA BELITUNG
KEPULAUAN RIAU DKI JAKARTA JAWA BARAT JAWA TENGAH D I YOGYAKARTA JAWA TIMUR BANTEN BALI
NUSA TENGGARA BARAT
NUSA TENGGARA TIMUR KALIMANTAN BARAT KALIMANTAN TENGAH KALIMANTAN SELATAN KALIMANTAN TIMUR KALIMANTAN UTARA SULAWESI UTARA SULAWESI TENGAH SULAWESI SELATAN SULAWESI TENGGARA GORONTALO SULAWESI BARAT
MALUKUMALUKU UTARA
PAPUA BARAT PAPUA 0 20 40 60 80 100 20 25 30 35 40 45 50
% of Self-Employed in the Province
% V il la g e s w it h En te rp is e s re c e iv in g KUR in a p ro v in c e (% )
Challenge 2: “Mismatched Demand and Supply” of KUR
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