Casting a Net Among the Poor

SMALL enterprises, particularly microbusinesses, do not appeal to the banks. Besides being viewed as far more administratively troublesome, they do not have reliable collaterals if repayment of their loans stagnates. Not surprisingly, the loan amounts extended to small- and medium-sized businesses are still very limited. Of the 43 million small/medium-sized businesses, Indonesian banks have reached only 5 million, or 11 percent.

However, the degree

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