To strengthen women-owned micro and small enterprises (MSEs) as vital drivers of Indonesia's economy, the ILO's Promoting SME Enterprises through Improved Entrepreneurs' Access to Financial Services (Promise II Impact) project has engaged rural banks (BPRs) across five provinces. Through a two-day workshop on gender-responsive business development, BPRs were trained to better support women entrepreneurs in overcoming structural barriers to accessing appropriate and affordable financial services.
Held in Surabaya, East Java, in the first week of February, the event brought together 28 participants from 13 BPRs across West Java, East Java, Bali, West Nusa Tenggara (NTB), and East Nusa Tenggara (NTT). Representatives from the Indonesian People's Economic Bank Association (PERBARINDO), the Association of Local Government-Owned Rural Banks (PERBAMIDA), PERBAMIDA University, and the Financial Services Authority (OJK) of East Java also participated.
During the seminar, participants were introduced to the ILO's WE-Check Tool, a practical self-assessment instrument that enables financial institutions to review their policies, systems, and services through a gender lens and identify concrete steps to better serve women entrepreneurs. The tool guides institutions in assessing leadership commitment, workplace practices, products and services, outreach strategies, and data systems.
Sara Andersson from the ILO's Women's Entrepreneurship Development programme shared strong results from the ILO's global experience. Selected institutions that applied WE-Check reported a 178 per cent increase in female clients and a higher share of women in their lending portfolios. To date, more than 150 organizations across 21 countries have used the tool, reaching over 500,000 women.
Highlighting the national context, Horas V.M. Tarihoran, Director of Supervision of Financial Services Providers' Conduct, Education, Consumer Protection, and Strategic Management Services at OJK, noted that of the more than 30 million MSMEs recorded nationwide, women represent nearly half of all entrepreneurs. East Java alone is home to 4.58 million MSMEs, ranking second nationally.
He also referred to OJK Regulation No. 19/2025 on Facilitating Access to Financing for MSMEs, which calls on financial institutions to provide easier, faster, and more inclusive financing while maintaining sound governance and risk management. "Improving access to MSME financing is essential to strengthening national economic resilience," he said. "Financial institutions must continue to innovate responsibly and inclusively."
In his opening remarks, Djauhari Sitorus, ILO Promise II Impact Project Manager, emphasized: "Rural banks are often the closest formal financial institutions to women entrepreneurs in rural and peri-urban areas. Strengthening BPRs to become more gender-responsive means strengthening local economies and contributing to decent work."
Representatives from UN Women, Poppy Ismalina, and Women's World Banking (WWB), Aries Setiadi, also underscored that gender responsiveness is a strategic investment and that applying a gender lens yields measurable business results.
"When financial institutions understand and respond to the realities of women entrepreneurs, they can expand outreach, improve portfolio quality, and strengthen long-term sustainability," Poppy said.
Meanwhile, Aries shared that WWB has collaborated with Bank Rakyat Indonesia (BRI) to expand financing for 299,042 ultra-micro women entrepreneurs. Pilot data showed that female agents achieved 1.7 times higher loan disbursement values and 2.4 times higher loan volumes than male agents.
The workshop concluded with participating BPRs developing priority actions, including clear objectives, target groups, responsible units, and timelines. Several BPRs also expressed interest in piloting the WE-Check Tool with ILO support, signalling a growing commitment to institutional change.
The workshop forms part of the ILO's Promise II Impact project, supported by the Swiss State Secretariat for Economic Affairs (SECO), which promotes inclusive financial ecosystems and value chain development while advancing decent work. By supporting rural banks to adopt gender-responsive approaches, the ILO and its partners aim to expand access to finance for women entrepreneurs and foster more inclusive local economic growth.
