This policy paper is the first of eight series derived from the “Financial Development for Strong and Equitable Growth” white paper, launched in February 2024. Each paper examines key issues of financial development using the components of the Financial Development Index developed by the IMF, which focuses on three critical elements: depth, access, and efficiency. These papers propose targeted strategies to enhance Indonesia’s financial landscape and foster sustainable economic growth.
Each paper in this series targets different strategies to enhance Indonesia’s financial landscape and foster sustainable economic growth. The first, Financial Product Innovation to Enhance Financing Options, explore various recommendations to improve Indonesia’s financial depth which will ultimately improve the overall development of Indonesia’s financial sector.
Indonesia’s financial sector lacks in depth due to limited financing options to fund infrastructure projects as well as heavy dependence on debt markets and bank loans, lack of regional capacity with existing resource capabilities, and non-monetized assets owned by developers Property, and lack of support for MSMEs. A shallow financial sector restricts investors’ options and hampers specific sectoral development. This policy paper explores strategies to enhance financing options and expand support for MSME financing.
Download Full Paper Here: IBC – Financial Product Innovation to Enhance Financing Options