Dewi Ratna Sjari Martokoesoemo, Goldy F. Dharmawan

Research output: Contribution to conferencePaperpeer-review


Indonesia's poverty is characterized by a significant portion of women-headed households. Moreover, many studies on women participation in the economy also showed that gender discrimination to job and credit access persist. Foreseeing growing attention on micro-small enterprises (MSEs), the government launched Kredit Usaha Rakyat (KUR). Looking to the legal foundation of KUR, KUR is a gender-blind government-subsidized credit program designed for entrepreneurs who want to expand their current formal enterprises which have been established at least for six months. Previous studies in other developing countries show that women excel better in credit market indicated by their lower rate of non-performing loan (NPL). Moreover, the previous findings also show that women-led enterprises give more impact on society; absorb more women labor, lower failing rate, and raise on family welfare. Considering that KUR's design is gender-neutral, it may fall to inefficiency trap by imposing an equal rule for men and women. This research aims to see whether government policy is efficient by not utilizing women advantages in the credit market. We use econometrics and qualitative surveys to assess gender behavior in the credit market. This paper uses Survei Industri Mikro-Kecil (VIMK) by BPS in 2014 to conduct econometrics analysis on gender behavior in the credit market. The result shows that women have three characteristics which differ both males and females in the credit market and demonstrating that the policy is inefficient. First, women tend to borrow a small loan compared to men. Second, women are more risk averse than men in the credit market. Third, women experience less moral hazard than men in the credit market. Therefore, to achieve a better outcome of improving the welfare of this segment, the government may redesign the current KUR program to align with the previous findings.
Original languageEnglish
Publication statusPublished - 2017
EventScholar Summit 2017 - ID, Depok, Indonesia
Duration: 1 Jan 2017 → …


ConferenceScholar Summit 2017
Period1/01/17 → …
Internet address


  • subsidized credit, demand side, women entrepreneur.


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