Agricultural value chain finance in Indonesia: Executive summary
2021
de Brauw, Alan | Sayaka, Bambang | Pasaribu, Sahat | Ambler, Kate | Herskowitz, Sylvan | Suryani, Erma | http://orcid.org/0000-0002-5045-8939 de Brauw, Alan | http://orcid.org/0000-0001-6277-0930 Ambler, Kate | https://orcid.org/0000-0003-3758-4524 Herskowitz, Sylvan
English. CGIAR Research Program on Policies, Institutions, and Markets (PIM)
Show more [+] Less [-]English. This report describes the present state of agricultural value chain finance in Indonesia and suggests policies that could help expand its availability where formal financial services have been unable to meet value chain actors’ needs. We first consider the features of a policy environment needed for agricultural value chain finance to flourish. Key points related to the policy environment are: Allow interest rates for loans from the formal sector to be priced by the market; Support secure, inclusive payment systems and transaction frameworks; Develop a legal framework that supports both the use of movable collateral in loans and a warehouse receipts system; Develop a legal and/or regulatory framework that supports contract farming among smallholders; And allow for a more open, technology-driven financial architecture that facilitates market entry among nontraditional financial service providers.
Show more [+] Less [-]Non-PR
Show more [+] Less [-]MTID; PIM
Show more [+] Less [-]English. IFPRI1; CRP2; IFS4AG; 3 Building Inclusive and Efficient Markets, Trade Systems, and Food Industry; DCA
Show more [+] Less [-]AGROVOC Keywords
Bibliographic information
This bibliographic record has been provided by International Food Policy Research Institute