A cross-cutting finance sector program covering financial stability, capital market development, and financial inclusion is viable only in the early stages of development. Initially, this type of engagement is useful for establishing relationships, building trust, and scoping key priority reforms. However, over time, a dedicated program focusing on one subsector or theme is preferable. This would enable ADB to perform comprehensive diagnostics to identify challenges in the subsector, followed by advisory and capacity building support to address these challenges. For example, despite significant progress, a significant portion of Indonesia’s population, including micro, small and medium enterprises (MSMEs), women, and youth, still do not have access to formal financial services. Combining this lesson with the second lesson above, ADB launched a dedicated program to address financial inclusion and improve access to finance, including for women, youth, and MSMEs.
Financial Market Development and Inclusion Program