An Impact Estimator Using Propensity Score Matching: People’s Business Credit Program to Micro Entrepreneurs in Indonesia

P eople’s business credit program (KUR) has been launched to alleviate poverty through provision of micro financing to micro entrepreneurs in Indonesia This study aims to estimate the impact of KUR program using cross-sectional data and propensity score matching technique (PSM). The survey was conducted on ۳۳۲ household entrepreneurs, consisting of ۱۵۵ KUR receivers and ۱۷۷ non-KUR receivers. Results show that KUR has impacts on increasing profits, total revenues, number of employees, and asset ownerships. KUR program also has impacted on reduction of food spending share. As such, KUR can play an important role to alleviate poverty and unemployment.

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Keywords: Micro financing ، Households ، poverty ، Cross-sectional ، Propensity Score Matching. JEL Classification: F۶۱ ، H۳۱ ، I۳۲ ، C۲۱