Definition used for the World Bank Access to Finance Survey  No 1.

Definition

Definition

Relevant A2F Questionnaire Code

Other (Different) Definition Assessing Fin. Access Brasil (Anjali Kumari) : Its access to financial institutions. Several indicators of access are : - Have bank account - Use banks as their primary financial institutions (public & private) - Use mainly non-bank financial institutions - Able to reach the financial institution they use by foot

Access to Finance

Improving Access to Fin. For India’s Rural Poor (Priya Basuii) : A. Supply side indicator i.e area coverage of bank (km), credit/deposit/bank branch distribution B. Demand side indicator i.e access to credit (with/without formal loan), deposit (with/without commercial, rural bank, cooperative, etc), insurance 2. a

Worker definition Agriculture sector Self-employed or employer or worker freelance/casual worker who works in farming sector.

b

Salaried employee

Respondent who works and receive monthly salary from other entity or individual.

c

Wage earner

Respondent who works as a government employee, private employee, or freelance worker.

B211=1 or B211=2 or B211=5

d

Farm earner

Respondent who works in either farming or fisheries sector.

B212=1 or B212=2

3. a

Savings Bank (Formal)

Can be in the form of savings or deposit in formal banks (BNI, BCA, Mandiri, BRI, BPR, BPD etc)

D11

(B211=3 & B212=1) or (B211=4 & B212=1) or (B211=5 & B212=1) B215=4

Savings account is the money deposit with

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Definition used for the World Bank Access to Finance Survey  inflow and outflow record transaction. By maintaining sufficient account balance, there is no limitation to deposit or to withdraw money. Deposit is a form of savings where the savings period and the withdrawal due date of the money is determined by the bank Formal other

Savings in institution such as cooperatives, credit union, BMT or other shariah cooperatives, BKM, or other non-bank formal financial institution.

D21

Cooperative is a business unit consisting of people as members or a legal entity that based its activities on cooperative principle and a society economic business unit which base on familial principle. Example: Village Unit Cooperative, fishermen cooperative, taxi drivers cooperative, etc. Credit union: cooperatives formed by employees or community association or labor union or other organization which provide intermediaries service (savings and credits) with relatively lower fees and same (if not higher) savings rate than banks. Legal entity savings institution runs by a formal institution. For example: BKM Informal

Savings in community welfare program or other informal savings group (savings club, arisan, etc)

D31

Welfare program is a government program intended to improve people’s welfare. For example: Revolving fund, Credit Union Village Economic Unit, etc.

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Definition used for the World Bank Access to Finance Survey  Informal savings group is a savings group that is not formed by the people and does not have any legal basis. For example: arisan, leave savings, etc

4.

Using other’s account

Respondent who use other’s (savings) account. They are considered as indirect bank service user.

D41

Non-savers

Respondents who do not have any savings or deposit account in neither formal nor non-formal financial institution.

If D11, D21, D31, D41 = No

Credit Formal

Microfinance

Types of institutions or individual who provide loan to the people: a. Financial institution in a form of a bank; both government and private banks, including syariah bank, BRI Unit, BPR and Syariah BPR, etc. b. Non-bank small credit program which finance small business that produce income for him/herself and the family. For example: BKD (Village Credit Body), savings and loan cooperative (KSP), savings and loan unit (USP), village credit fund institution (LDKP), baitul mal wattanwil (BMT), nongovernmental organization (NGO), arisan, Grameen financing program, ASA financing program, self-help group (KSM), and credit union.

Bank of Indonesia definitioniii : a. Bank-MFI: BRI unit, BPR, Bank Bukopin, Danamon Simpan Pinjam b. Formal non-bank MFI: BKD, Saving & loan cooperatives, LDKP, Pawnshop c. Non-formal non-bank MFI: self help group, saving and credit club, BMT, NGO Definition by Coordinating Ministry for Economic Affairs: MFI is micro finance businesses which provide micro financing to accelerate financing access for micro and small business. It consisted of: a. Formal MFI: BRI unit, BPR, Cooperatives (KSP, USP), Sharia cooperatives (KJSK, BMT), and credit union b. Semi formal MFI: BKD c. Informal MFI: community rotating savings group, community selfreliance group

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Definition used for the World Bank Access to Finance Survey 

Pawn shop

c.

Community Welfare Scheme

d. Government program to improve the welfare of the people. For example: Revolving Fund, etc.

Informal

e. Employer. Employee informally borrowing money from his or her employer. For example: Maid or driver who borrows money from their employer. f.

Place to borrow money in exchange of borrower asset as collateral. For example: Perum Pegadaian and other informal pawn shop or individual.

Daily bank is a business or individual unit that provides loans to people with high interest rate. Loan repayment could be in daily or weekly but tend to be short. Daily bank is also commonly known as installment bank or informal mobile bank.

g. Neighbor, family and friends. h. On credit from a shop. Purchasing goods from shop, dealer, or individual by credit. For example: a mobile trader, Columbia, Federal Indonesia Finance, etc.

5.

Insurance Insurance

Insurance is a financial product which provides financial protection by providing the compensation in the case of risk/

F 1.1

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Definition used for the World Bank Access to Finance Survey  incident such as death, disabilities, fire, etc. The customer of insurance service is obliged to pay the premium which amount depends on the product. Types of insurance: a. Health insurance is an insurance that pays for medical expense which sometimes covering disability or longterm nursing or custodial care. ASKES is government health insurance provided to workers/ employees in order to improve the quality of manpower and their welfare, managed by PT ASKES. ASKESKIN/JAMKESMAS is a health insurance which is provided to the poor population in order to have access to free health care. b. Private health insurance is health insurance products provided by nongovernment insurance companies. For example: Allianz Life, Bringinlife, Bumiputramuda, etc. c.

Homeowners insurance (building insurance), is insurance that provide protection in the event of accident such as fire, destruction, flood, earthquake, that cause loss of residence or asset. Companies that offer such insurance are: PT Asuransi Jasa Indonesia, PT Asuransi Raksa Pratikara, ASRI (Asuransi Rumah Idaman), etc.

d. Education insurance is an agreement between insurer and customer where customer agrees to pay certain regular

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Definition used for the World Bank Access to Finance Survey  premium in returns for future endowment education fund covering education related expenses when the customer child reaches the school age. In general the amount of education fund is a certain percentage of the insurance coverage. For instance, only 15% of insurance coverage will be given to pay for the enrollment fee of primary school education but up to 50% insurance coverage will be provided for the enrollment fee of undergraduate education. The companies that issues education insurance products are Bumi Putra, Allianz Life, Jasindo, Prudential, etc. e. Vehicle insurance is an insurance that insures for loss and destruction of vehicles caused by such as: crash, collision, including accident that is caused by material, building construction, self-disability: other’s people bad intention/ act; thievery including thievery with violence or threat; fire; lightning strikes; destruction in a ferry transport that is managed by Directorate of Land Transportation; abnormality of wheel that causes accident; cost of towing. The vehicles that can be insured are two wheeled vehicles (motorbike, scooter), four or more wheeled vehicle (sedan, minibus, jeep, truck including accessory and other additional equipment in that car. Insurance companies that issue vehicle insurance are ACA Asuransi, PT Asuransi Jasa Indonesia, PT Bumiputramuda, Astraworld, PT Asuransi Bintang, etc.

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Definition used for the World Bank Access to Finance Survey  f.

Accident insurance is an insurance that provides coverage for death, permanent disabilities & cost of treatment that are caused by external accident. Companies that issue these products are JAMSOSTEK, Asuransi Bintang, Asuransi Tunjangan Kecelakaan Pekerja, Asuransi Jasindo.

g. Life insurance is a contract between the policy owner and the insurer, where the insurer agrees to pay sum of money upon the occurrence of the insured individual’s or individuals’ death or other event, such as terminal illness or critical illness. Life insurance products are widely varied and provide various benefits including cash in time of need or death compensation for the family member. Insurance companies that issue life insurance products are : AXA Life Indonesia, Allianz Life, PT Asuransi Jiwa Manulife, Asuransi Jiwa Bersama Bumiputra, Asuransi Jiwa Bumi Asih Jaya, etc.

i

World Bank. 2004. “Brazil: Access to Financial Services”, World Bank Report No. 27773-BR. World Bank. 2006c. “Improving Access to Finance for India’s Rural Poor”, Washington, DC. iii Both definition from come from respective institutions presented in Asia Pacific Regional Microcredit Summit, Bali, Indonesia on 28-30th July 2008 ii

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