Paper

Report Regional Microfinance Development Project NTB The MFI Survey

Microfinance institutions and their performance in a remote area of Indonesia - A survey
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This survey has three specific purposes:

  • To provide information about the origin, extent and quality of existing supply of institutional microfinance services in Nusa Tenggara Barat (NTB), Indonesia;
  • To learn the key characteristics of the household (and micro-enterprise) demand for financial services and identify demand-supply gaps;
  • To investigate perceptions of the microfinance supply by the demand side.

The survey analyzes:

  • Secondary and primary data concerning the current market (supply and demand) of microfinance services in the province;
  • The microfinance system in NTB province;
  • The microfinance institutions (MFIs)and their characteristics in terms of institutional origin, ownership, governance and services;
  • The performance of the MFIs in the areas of savings and loan services, operational efficiency and sustainability, officer perceptions regarding servicing the poor.

It concludes that:

  • The microfinance system comprises bank and non-bank institutions in the formal sector and various forms of informal sources;
  • There are twelve types of MFIs;
  • The national legal framework recognizes only rural banks and cooperatives;
  • The majority of MFIs originate from social development programs;
  • The ownership of cooperative MFIs can be problematic and this often results in problems of governance;
  • While most MFIs are fully financial institutions, a few of them also have other business activities;
  • Service performance of MFIs varies widely among types and among individual MFIs.

About this Publication

By Budastra, K.
Published