This policy brief was developed by the Association for Women in Small and Micro Business Assistance
(ASPPUK) in consultation with APF Canada. With respect for the efforts made in developing this
publication, credit for the written content is attributed to ASPPUK. While APF Canada provided technical
input and editorial support, care was taken to preserve the author’s voice, local context, and approach.
We sincerely appreciate ASPPUK’s contributions and the important perspective this work brings to the
APEC-Canada Growing Business Partnership project.
Transforming Asia Pacific Through Inclusive Entrepreneurship and Innovation
Bridging the Gender Gap in Access to Finance: Pathways to Inclusive Trade for Women Entrepreneurs
June, 30 2026
This policy brief examines structural barriers within Indonesia's financial ecosystem which restrict the access of women-led MSMEs to formal financing. The main barriers to financing for women-led MSMEs stem from concerns related to the risk of defaulting, lack of collateral, high interest rates, and complicated procedures, all of which contribute to a persistent financial gap, which manifests in two interrelated ways: first, through inadequate loan sizes that do not align with the operational and growth needs of women-led MSMEs; and second, through unmet demand among women entrepreneurs who require financing but are unable or unwilling to access formal credit under prevailing conditions.
Alternative financing—chosen for its ease of administration, collateral-free access, and close community ties—is more responsive to women’s needs, but has not yet developed the technical support and incentives that formal financial institutions can offer. These findings highlight the need for trust-based inclusive financing models, the strengthening of digital and financial capacity, and institutional reform to expand progressive financing channels for women-led MSMEs.