Microfinance Innovation Center For Resources and Alternatives

While Information and Communication Technology (ICT) spending in Indonesia has been growing rapidly in recent years, access is still limited and concentrated on middle-class users in urban areas.

Increased ICT usage has the potential to generate economic activity in a several ways:

1. For some businesses, Personal Computers (PCs) are the prime capital assets. Internet cafés and other shared use models are the principal form of access to PCs and the internet for the majority of Indonesian users. Some borrowers will purchase PCs to setup or expand such businesses. Commercial ICT training schools are a growing business, often providing training services to public schools.
2. PCs will improve efficiency and effectiveness of other micro and small businesses, enabling them to grow.
3. PC purchases will generate income for the whole PC eco-system of assemblers/suppliers, software vendors, trainers and maintainers.
4. Increased PC usage, at home, at internet cafés and at work, will raise levels of ICT literacy, helping efforts to produce a more highly skilled workforce.

Entrepreneurs in the ICT sector share many of the problems faced by other sectors, principally access to capital. Most banks do not have specialized PC lending products or services. Such borrowing for PCs that does take place either is secured by other assets or limited to lower risk, salaried employees.