Bill on Micro Finance Institution in Limbo

The Indonesian Government has always placed great emphasize on empowering small businesses, which entails their access to financing. To date, financing for small businesses are provided through several formal banking arrangements, namely various types of financing through state-owned banks (e.g. Bank Rakyat Indonesia), or through community credit bank (Bank Perkreditan Rakyat or “BPR”). These are still deemed insufficient and since 2002 the Minister for Cooperatives, Small and Medium Enterprises (“Minister”) has been pushing for a bill on micro finance institution (“Bill”).