| Microfinance in Indonesia |
|
The microfinance sector in Indonesia is one of the largest in the world with over 50,000 microfinance institutions (MFIs), some in existence over 100 years. However, nearly 40 million low-income people in Indonesia still lack access to financial services and over 70% live on under $1 per day. The majority of MFIs in Indonesia are characterized by low growth in outreach and inefficient systems, citing lack of access to affordable capital as their main constraint. There is vast potential for growth in the sector if key inputs can be effectively provided on a wide scale in Indonesia. |