Reforming Policies for Small and Medium-Sized Enterprises in Indonesia

  • Sarah Weilant
  • Indrasari Tjandraningsih
  • Alexander D. Rothenberg
  • Arya Gaduh
  • Charina Chazali
  • 1 more

Abstract

Including micro firms, SMEs are responsible for more than 97 percent of total employment in Indonesia and represent 99 percent of all firms. The Indonesian government has tried to assist SMEs through programmes, such as subsidised credit, one-stop shops to lower business registration costs and government-sponsored trade fairs. However, there is little evidence on how effective these programmes are or on ways to improve government policies aimed at helping SMEs. We conducted structured interviews with 192 firms across five provinces in Indonesia to investigate the constraints that firms face and how existing programmes do – or do not – help reduce these constraints. We conclude the report with policy recommendations targeted at the Indonesian government and other stakeholders, focusing on the importance of credit and on the need to remove information barriers.

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Publisher

RAND Corporation

The RAND Corporation is an American nonprofit think tank that develops solutions to public policy... more

Funders

TNP2K
Government Body in Jakarta, Indonesia • Funded 2 publications

RAND Corporation
Think Tank in Santa Monica, USA • Funded 1 publication

DFAT | AusAID
Government Body in Canberra, Australia • Funded 135 publications