Publication:
Can Public Credit Schemes Improve Access to Finance for Small Businesses? Evidence from Indonesia

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dc.contributor.authorAlibha, Salman
dc.contributor.authorJohnson, Hillary C.
dc.contributor.authorNiang, Cecile Thioro
dc.contributor.authorStrobbe, Francesco
dc.date.accessioned2024-09-06T21:33:34Z
dc.date.available2024-09-06T21:33:34Z
dc.date.issued2024-09-06
dc.description.abstractExamining one of the world’s largest public business support programs, this paper studies how subsidized credit and partial credit guarantees shape access to finance for micro and small businesses in Indonesia. The analysis uses administrative data on more than 8.4 million borrowers and unique quantitative and qualitative data to show that subsidized credit can enable firms to access formal credit for the first time and boost financial inclusion. However, subsidized credit does not alleviate longer-term credit constraints by serving as a stepping stone to unsubsidized commercial credit in this context. The results highlight the challenge of reaching borrowers without collateral, even in programs that explicitly target them using instruments such as partial credit guarantees. The paper sheds light on how public credit schemes for small businesses can be designed to optimize inclusiveness and additionality.en
dc.identifierhttp://documents.worldbank.org/curated/en/099257009042435538/IDU12698ff2e1c4be1400518dec1e349ef771a96
dc.identifier.doi10.1596/1813-9450-10894
dc.identifier.urihttps://hdl.handle.net/10986/42127
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC: World Bank
dc.relation.ispartofseriesPolicy Research Working Paper; 10894
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.subjectGOVERNMENT CREDIT PROGRAMS
dc.subjectSUBSIDIZED CREDIT
dc.subjectPARTIAL CREDIT GUARANTEES
dc.subjectMICRO-SMALL AND MEDIUM ENTERPRISES
dc.subjectFINANCIAL INCLUSION
dc.subjectINTEREST RATES
dc.subjectINDUSTRY, INNOVATION AND INFRASTRUCTURE
dc.subjectSDG 9
dc.titleCan Public Credit Schemes Improve Access to Finance for Small Businesses? Evidence from Indonesiaen
dc.typeWorking Paper
dspace.entity.typePublication
okr.associatedcontenthttps://reproducibility.worldbank.org/index.php/catalog/181 Link to data and reproducibility package
okr.crossref.titleCan Public Credit Schemes Improve Access to Finance for Small Businesses? Evidence from Indonesia
okr.date.disclosure2024-09-06
okr.date.lastmodified2024-09-04T00:00:00Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099257009042435538/IDU12698ff2e1c4be1400518dec1e349ef771a96
okr.guid099257009042435538
okr.identifier.docmidIDU-2698ff2e-c4be-4005-8dec-e349ef771a96
okr.identifier.doi10.1596/1813-9450-10894
okr.identifier.doihttps://doi.org/10.1596/1813-9450-10894
okr.identifier.externaldocumentum34386160
okr.identifier.internaldocumentum34386160
okr.identifier.reportWPS10894
okr.import.id5219
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099257009042435538/pdf/IDU12698ff2e1c4be1400518dec1e349ef771a96.pdfen
okr.region.administrativeEast Asia and Pacific
okr.region.countryIndonesia
okr.sectorBanking Institutions,Capital Markets
okr.themeFinancial Infrastructure and Access,Gender,Human Development and Gender,Infrastructure Finance,Financial Stability,MSME Finance,Financial inclusion,Finance for Development,Finance,Credit Infrastructure,Payment & markets infrastructure,Financial Sector oversight and policy/banking regulation & restructuring
okr.topicFinance and Financial Sector Development::Finance and Development
okr.topicPrivate Sector Development::Microenterprises
okr.topicPrivate Sector Development::Small and Medium Size Enterprises
okr.topicGovernance::Governance and the Financial Sector
okr.unitEAP Chief Economist Unit (EAPCE)
okr.unitEFI-EAP-FCI-Finance-2 (EEAF2)
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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