In general, financial institutions in Indonesia had asymmetric information and had struggled to identify potential credit risk and creditworthiness for both the individual and the MSME sector. As the result, the credit interest rate charged to them tends to be high because of the high risk premium. 11. One component of the FISF program is Credit Reporting System (CRS).
With the CRS, it is expected that the classic problem of asymmetric information that has become the critical issue in the provision of funds, can be solved. With the CRS, the financial institutions are able to know and analyze the profile of prospective debtors, can assess possible risks, can streamline the cost, can lower NPL and create sound credit culture.