Vacancy for Short Term Consultant- Roll Out Credit Reporting/ Credit Bureau to Microfinance and MSME Lending Providers

International Finance Corporation (IFC), a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory services to businesses and governments.  IFC in Indonesia aims to: reduce the impact of climate change, improve rural incomes, and promote sustainable urbanization. IFC in Indonesia combines investment and advisory services to expand access to finance, extend the reach of infrastructure, strengthen commodity-based supply chains, and improve the business environment. 

IFC has supported credit reporting development in Indonesia since 2009, through building the capacity of the Bank Indonesia on credit information sharing practices and systems (SID). This support contributed to the issuance of regulation No. 15/1/PBI/2013 by Bank Indonesia and the implementing guidelines for the establishment of LPIP, including the licensing, operations, and supervision framework.

Credit information sharing in Indonesia is evolving into a new phase of development since the Debtor Information System or Sistim Informasi Debitur (SID) regulation and management has been successfully transferred to Financial Service Authority or Otoritas Jasa Keuangan (OJK), and in early 2018 OJK has launched a new credit reporting system called Sistim Layanan Informasi Keuangan (SLIK). In parallel, two private credit bureaus or Lembaga Pengelola  Informasi Perkreditan (LPIP) have been granted full operational licenses - Kredit Biro Indonesia Jaya (KBIJ), and Pefindo Biro Kredit (PBK).. These LPIPs are now formally in operation to facilitate commercial banks’ and non-bank financial institutions’ (NBFIs) access to credit information in addition to SLIK.  

However, the existing Indonesian credit information sharing systems and practices remain inadequate in serving the economy dominated by consumers and informal businesses, including the MSME sector. Hence, it is critical to support the capacity of OJK and LPIPs to facilitate the inclusion of MSME lending institutions.

Given that LPIPs show interest in serving the microfinance sector as an alternative to SLIK, there is a great opportunity to facilitate the integration of microfinance institutions in the credit information sharing system or credit bureau, which could help expand financial access to underserved consumers and MSMEs, while helping to mitigate concerns of a growing over-indebtedness challenge in some areas of the country. In particular, to support savings and loan cooperatives (KSPs), microfinance institutions (LKMs) and other MSME lending providers that have not yet been able to access the credit reporting system due to technical impediments and lack of knowledge on credit reporting principles and mechanism.

By facilitating broader MSME lending providers to join the credit reporting system or credit bureau, it will enhance lending process, reduce costs and better credit risk management. Furthermore, an improvement in credit sharing information for microfinance institutions will reduce the risk of over-indebtedness and it will capture the underserved MSMEs. This will allow banks and financial institutions to deepen their market in MSME sector.

The program is working with regulators such as OJK and Ministry of Cooperative & SMEs, LPIPs, microfinance associations and MSME lending providers in facilitating the relevant institutions to join SID/SLIK or LPIPs.

Objective

The program is envisioned to improve credit reporting/credit bureau coverage of millions underserved consumers and MSMEs, as well as to facilitate more financing to the MSME sector. More specifically, with collaboration with the main stakeholders: regulators, LPIPs and industry associations, the program’s objectives are, as follows:

•  Raising awareness and advocating the benefits of the credit reporting and credit bureau to the microfinance sector.
• Support the readiness and facilitate microfinance institutions and other MSME lending providers to participate in LPIP/SLIK
• Educate microfinance institutions and micro-end-clients including MSMEs on benefits and importance of credit bureau in improving creditworthiness and sustaining financial access.  

 To achieve the objectives and to ensure program activities are delivered on time, IFC is recruiting a short- term consultant (STC) that will work closely with the project team and the project partners.

Scope of Work

•  Conduct a series of events to socialize the importance of SLIK or LPIPs to wider microfinance sector and stakeholders;  
• Support consulting firm in conducting readiness study by facilitating the distribution and collection of questionnaires, interviews, and reviewing data and information including the study report;
• Facilitate microfinance institutions and MSME lending providers to access LPIPs’ services and/or SLIK through provisions of advice, training and other relevant support;
• Facilitate LPIPs to reach out to microfinance sector players in expanding the inclusion of microfinance institutions and MSME lending providers into credit reporting system/credit bureau;
• In collaboration with LPIPs/OJK, to develop training modules for microfinance institutions and MSME lending providers;
• Develop campaign module(s) for micro-end client and MSMEs to improve their awareness and understanding on credit reporting system/credit bureau function and benefit.
• Provide advice, attend meetings, develop presentations, reports as required.

Expected Deliverables   

• Hosting a series of dissemination events in major cities/regions across Indonesia
• Hosting training events for microfinance institutions and MSME lending providers
• Training modules for microfinance institutions and MSME lending providers
• Campaign modules for micro-end clients and MSMEs
• A set of evaluation reports
• Written recommendations to improve microfinance institutions access to LPIPs’ services and/or SLIK
• Written recommendation to LPIPs and regulators with regard to facilitating microfinance institutions to join SLIK or LPIPs
  
  

Selection Criteria

• Bachelor’s degree in Finance/Economics/Business Administration/IT or equivalent degree from a recognized institution; Master’s degree is preferred
• Good understanding of microfinance/banking sector in Indonesia with minimum 10 years of working experience at microfinance institution/bank/non-bank financial institutions; consultant or trainer with microfinance focus can be considered;
• Good network with microfinance and MSME lending providers across Indonesia;
• Experience in developing institutional capabilities and establishing relationship with sector stakeholders such as regulators (OJK and Ministry of Cooperatives & SMEs), industry associations and LPIPs;
• Thorough knowledge on microfinance/banking operations, MSME loan processing, risk management and customer protection;
• Familiar with reporting requirements of former SID and/or SLIK, core banking system and MIS;
• Able to develop good quality training and campaign modules and produce concise written reports, as well as interactive slide presentations;
• Robust experience in conducting training of trainers (ToT) and in-class training;
• Strong communication skills in speaking, writing and presenting;
• Commitment to quality and provide prompt response to clients;
• Willing to travel across regional cities if needed; and
• Fluent in English and Bahasa Indonesia
  
  
  

Duration of Contract

The duration of the assignment is for 30 days. After completion of the initial period, it may be extended based on business need.

 Please submit the application along with the CV via email to BFebriani@ifc.org no later than 25 May 2018.