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Impact of Microfinance on Gender Equality in Indonesia

In: Proceedings of the International Conference on Managing the Asian Century

Author

Listed:
  • John Vong

    (James Cook University, Singapore Campus)

  • Song Insu

    (James Cook University, Singapore Campus)

  • Rakesh Dhananjay Salian

    (James Cook University, Singapore Campus)

  • Rui Xu

    (James Cook University, Singapore Campus)

  • Rinu Kariath

    (James Cook University, Singapore Campus)

  • Kritchawan Bunyong

    (James Cook University, Singapore Campus)

Abstract

The empowerment of women micro entrepreneurs is necessary for the holistic social-economic development of a nation. The aim of this paper is to address the gap in the study of formal financial access to rural women micro-entrepreneurs in Indonesia. This study will contribute further in the pool of academic resource for micro-financing organisations intending to create formal financial products for this niche market. Meta-analytic research methodology was employed to review relevant literature, in order to assemble supporting data relating to women’s constraints for access to formal micro-finance for women. As a result, a hypothesis was devised that gender inequality is the underlying constraint for rural women entrepreneurs to access formal microfinance. Evidential data was reviewed for factors pertaining to gender inequality index, general and financial education status, and social-cultural norms of rural Indonesian women. In conclusion, the authors found that gender inequality issues require further attention by micro financers during the design process of successful micro-financial products. In addition, relevant recommendations were formulated such as aesthetic redesign of financial outlets, reduction in lead time and costs for micro-financial transactions, and micro-insurance. Further research is required to conduct a test of the generated hypothesis at the location under discussion.

Suggested Citation

  • John Vong & Song Insu & Rakesh Dhananjay Salian & Rui Xu & Rinu Kariath & Kritchawan Bunyong, 2013. "Impact of Microfinance on Gender Equality in Indonesia," Springer Books, in: Purnendu Mandal (ed.), Proceedings of the International Conference on Managing the Asian Century, edition 127, chapter 23, pages 201-206, Springer.
    • Handle: RePEc:spr:sprchp:978-981-4560-61-0_23
    DOI: 10.1007/978-981-4560-61-0_23
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