The lack of acceptable collateral is one of the issues with regard to access to financing. MSMEs have moveable properties that can be used as collateral to facilitate access to credit. There is already an existing legal framework for secured transactions and collateral registry provided under the Chattel Mortgage Law (Act No. 1508). This law, however, has not been fully utilized to facilitate credit access of MSMEs. Moreover, there is currently no unified electronic registry system than can deter the use of one particular moveable asset as collateral in several loan transactions. Thus, it is important to strengthen the legal and institutional framework to facilitate the use of movable property as collateral for both business and consumer loans.>>read complete document
