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PRWP

Reproducibility package for Can Public Credit Schemes Improve Access to Finance for Small Businesses? Evidence from Indonesia

2024
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Reference ID
RR_IDN_2024_151
DOI
https://doi.org/10.60572/swnw-p923
Author(s)
Salman Alibhai, Hillary C. Johnson, Cecile Thioro Niang, Francesco Strobbe
Collections
World Bank Policy Research Working Papers
Metadata
JSON
Created on
Sep 03, 2024
Last modified
Sep 05, 2024
  • Overview
  • Reproducibility Package
  • Description
  • Scope and coverage
  • Disclaimer
  • Access and rights
  • Contacts
  • Information on metadata
  • Citation

    • Overview

    Abstract

    Examining one of the world’s largest public business support programs, this paper studies how subsidized credit and partial credit guarantees shape access to finance for micro and small businesses in Indonesia. Using administrative data on over 8.4 million borrowers and unique quantitative and qualitative data, we find that subsidized credit can enable firms to access formal credit for the first time and boost financial inclusion. However, we do not find evidence that subsidized credit can alleviate longer-term credit constraints by serving as a stepping-stone to unsubsidized commercial credit. Our results also highlight the challenge of reaching borrowers without collateral, even in programs that explicitly target them using instruments such as partial credit guarantees. The paper sheds light on how public credit schemes for small businesses can be designed to optimize inclusiveness and additionality.

    Reproducibility Package

    Scripts
    Get Reproducibility Package
    Title
    Reproducibility package (partial data and code) for Can Public Credit Schemes Improve Access to Finance for Small Businesses?
    Date
    2024-06
    Dependencies
    All dependencies are stored in the ado folder.
    Instructions
    See README in the reproducibility package.
    Notes
    Computational reproducibility verified by Development Impact (DIME) Analytics team, World Bank
    Source code repository
    Repository name URI
    Reproducible Research Repository (World Bank) https://reproducibility.worldbank.org
    Software
    Name
    Stata
    Version
    18 MP

    Reproducibility

    Technology environment

    Paper exhibits were reproduced in a computer with the following specifications:
    • OS: Windows 11 Enterprise, version 21H2
    • Processor: Intel(R) Xeon(R) Gold 6226R CPU @ 2.90GHz, 16 Core(s)
    • Memory available: 15.7 GB
    • Software version: Stata 18
    Technology requirements

    ~30 minutes runtime
    Reproduction instructions

    For successful replication of this package, new users have to obtain data access. To run the code from the beginning, users need to obtain full access to all data sources. Once accessed, they should name the files following the conventions outlined in the README and data entry documentation, and correctly place these files into the designated folder. After that users must update the directory paths and run the main do file.

    Data

    Datasets
    Name
    World Development Indicators (WDI)
    Note
    Source: World Bank Data from 2012-2022 is used to construct figure 1 and is included in "Figures 1 2 and 3.xlsx".
    Access policy
    Published with package
    Data URL
    https://databank.worldbank.org/source/world-development-indicators
    Name
    Indonesia’s Financial Services Authority (OJK)
    Note
    This dataset is publicly available for free from the Indonesia’s Financial Services Authority (OJK). It includes commercial and sharia lending volumes and lending accounts for MSMEs. Data from 2012-2022 can be downloaded in the data URL. Users must download the zip files containing “Indonesia Financial System Statistics of Bank Indonesia (SSKI)” for different periods. Data from 2012-2022 is used to construct figure 2 and 3 and is included in "Figures 1 2 and 3.xlsx".
    Access policy
    The dataset is public and not included in the package.
    Data URL
    https://www.ojk.go.id/en/kanal/perbankan/data-dan-statistik/statistik-perbankan-indonesia/Default.aspx
    Name
    Survey of Businesses Receiving The People's Business Credit (2021)
    Note
    Located: \Survey of KUR borrowers Filenames: rf15_deidentified.dta bi03_deidentified.dta bi03_deidentified_replication.dta bi05_deidentified.dta bi05_deidentified_replication.dta bi08_deidentified.dta main_deidentified.dta main_deidentified_replication.dta rf05_deidentified.dta rf05_deidentified_replication.dta This data was collected for the purpose of this study. The data collection used the SIKP database as a sampling frame to draw a nationally representative sample of KUR borrowers using probability proportional to size methodology. The data was collected over the phone in January and February 2021 for 1,402 KUR borrowers.
    Access policy
    The dataset is licensed and not included in the package. Data can be downloaded in the data URL. Users must go to the following link, download the files and save it in the "Survey of KUR borrowers" folder
    Data URL
    https://microdata.worldbank.org/index.php/catalog/6282
    Name
    World Bank Enterprise Surveys (2023)
    Note
    Located at: wbes\Indonesia-2023-full-data.dta Data should be downloaded from the following link and then placed in the Data folder with the same naming convention.
    Access policy
    The dataset is public but not included in the package. Data can be downloaded in the data URL.
    Data URL
    https://login.enterprisesurveys.org/content/sites/financeandprivatesector/en/signin.html?resource=%2Fcontent%2Fsites%2Ffinanceandprivatesector%2Fen%2Flibrary%2Flibrary-detail.html%2Fcontent%2Fdam%2Fwbgassetshare%2Fenterprisesurveys%2Feconomy%2Findonesia%2FIndonesia-2023-full-data.dta&$$login$$=%24%24login%24%24&j_reason=unknown&j_reason_code=unknown
    Name
    Sistem Informasi Kredit Program (SIKP) database
    Note
    This dataset includes data on over 8 million borrowers from the KUR Program. The KUR Program data in the SIKP are confidential and belong to the Indonesia Coordinating Ministry for Economic Affairs. The authors do not have the rights to publish or distribute this dataset and no longer had access to it at the time of working paper submission. Access was received through a confidential data sharing agreement, and interested parties should contact the KUR program committee within the Indonesia Coordinating Ministry for Economic Affairs to inquire about access to the data.
    Access policy
    The data is confidential and not included in the package.
    Data statement

    Some data is confidential and has not been included in the reproducibility package. For more details, please refer to the README file.

    Description

    Output
    Type
    Working Paper
    Title
    Can Public Credit Schemes Improve Access to Finance for Small Businesses? Evidence from Indonesia
    Authors
    Salman Alibhai, Hillary C. Johnson, Cecile Thioro Niang, Francesco Strobbe
    Description
    Policy Research Working Paper (PRWP) WPS10894
    URL
    http://documents.worldbank.org/curated/en/099257009042435538/IDU12698ff2e1c4be1400518dec1e349ef771a96
    DOI
    https://doi.org/10.1596/1813-9450-10894
    Authors
    Author Affiliation Email
    Salman Alibhai World Bank aalibhai@worldbank.org
    Hillary C. Johnson World Bank hjohnson1@worldbank.org
    Cecile Thioro Niang World Bank cniang@worldbank.org
    Francesco Strobbe World Bank fstrobbe@worldbank.org
    Date of production

    2024-06

    Scope and coverage

    Geographic locations
    Location Code
    Indonesia IDN
    Keywords
    Government credit programs Subsidized credit Partial credit guarantees Micro-small and medium enterprises Financial inclusion
    Topics
    ID Topic Parent topic ID Vocabulary Vocabulary URI
    G21 Banks • Depository Institutions • Micro Finance Institutions • Mortgages G2 Journal of Economic Literature (JEL)
    H81 Governmental Loans • Loan Guarantees • Credits • Grants • Bailouts H8 Journal of Economic Literature (JEL)
    E43 Interest Rates: Determination, Term Structure, and Effects E4 Journal of Economic Literature (JEL)

    Disclaimer

    Disclaimer

    The materials in the reproducibility packages are distributed as they were prepared by the staff of the International Bank for Reconstruction and Development/The World Bank. The findings, interpretations, and conclusions expressed in this event do not necessarily reflect the views of the World Bank, the Executive Directors of the World Bank, or the governments they represent. The World Bank does not guarantee the accuracy of the materials included in the reproducibility package.

    Access and rights

    License
    Name URI
    Modified BSD3 https://opensource.org/license/bsd-3-clause/

    Contacts

    Contacts
    Name Affiliation Email
    Reproducibility WBG World Bank reproducibility@worldbank.org
    Hillary C. Johnson World Bank hjohnson1@worldbank.org

    Information on metadata

    Producers
    Name Abbreviation Affiliation Role
    Reproducibility WBG DIME World Bank - Development Impact Department Verification and preparation of metadata
    Date of Production

    2024-07-02
    Document version

    1

    Citation

    Citation
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