Credit growth is vital to economic development; enabling businesses; particularly MSMEs; to invest; expand operations; and generate employment. MSMEs are critical to Indonesia’s economy; contributing close to 60% of GDP and employing over 95% of the workforce. Yet MSMEs face a persistent credit gap of US$234bn as of 2023; driven by risk perceptions and collateral limitations. Only 19% of bank loans were extended to MSMEs in 2023. Access to Finance by receivables and inventory such as [1]Supply Chain Finance (SCF) is vital for MSME liquidity. This requires modern secured transaction laws; operational collateral registries; and institutional recognition of receivables as collateral. Promoting Asset-Based Lending (ABL) through movables assets particularly receivables and inventory can significantly improve MSME liquidity; enhancing resilience and supporting economic growth. In mature markets; lending secured by movable assets can account for 60-70% of total commercial lending. IFC recently launched the Indonesia Lending Growth (Indo LendGrowth) Program. Under this program; IFC aims to unlock broader credit growth in Indonesia through secured transactions financing using receivables including SCF – where it has already laid foundational work – as critical. Ultimately; IFC plans to partner with financial institutions in Indonesia to conduct a demonstration transaction involving SCF using receivables; through funded/unfunded risk-sharing facility in a portfolio of supply chain finance-related assets. As part of the program; IFC intends to carry out comprehensive assessment and feasibility of a digital receivables platform to understand the potential for secured transactions financing using receivables to further promote access to financing for MSMEs aligned with the country’s priorities. The objective of this assessment is to:(1) Quantify the potential financing opportunity from receivables-based lending for MSMEs.(2) Understand the key factors needed by FIs; including digital players; to expand SCF for MSMEs.(3) Assess how market-wide digital receivables platforms can promote MSME lending based on global experiences.(4) Raise awareness of ABL particularly SCF and receivables-based lending among stakeholders. FIs include state-owned banks; private commercial banks; non-banking financial institutions such as multi-finance companies; platforms; and fintechs specialized in MSME financing.