Women-owned businesses represent 60 percent of the total micro, small and medium enterprises (MSME) in Indonesia, offering an important contribution to Indonesia's economic growth. With so many women working in the MSME sector in Indonesia, access to credit for businesswomen becomes an important issue to consider. Although Indonesian laws regarding borrowing (formally) do not discriminate women, some women business owners say it is still difficult for women to access formal credit.
Chapter One looks at the loan processes in Indonesia and offers general information about businesswomen as borrowers with specific focus on borrowing activity in 2004. Chapter Two offers more specific information from the banks' perspectives about the kind of regulations and conditions required to access credit. Chapter Three focuses on the study population in Surabaya, examining the issues businesswomen face in applying for and accessing credit. Finally, Chapter Four offers recommendations to banks and policy makers for improving access to credit for businesswomen.