On 24 January 2018, UNDP Indonesia held the second and last FKP seminar of January in Jakarta. The general topic of this seminar was a continuation of the previous seminar, which was “Towards the 2030 Agenda: Mobilising Innovative and Social Finance”. In this second part, however, the speakers were more focusing on the private sector financing to empower the people of Indonesia. The first study entitled “Social Finance and Social Enterprises: A New Frontier for Development in Indonesia” was prepared by UNDP and Angel Investment Network Indonesia (ANGIN), with support from the Canadian government. Presented by David Soukhasing and Valencia Dea (ANGIN), the study intended to map the landscape of key stakeholders in the growing social finance and social enterprise ecosystem in Indonesia. Soukhasing and his team conducted interviews and FGD with social enterprises, investors, and enablers as well as desk research to collect the data needed. The demand side, which represented by social enterprises, predominantly consist of agricultural sector (55%), followed by financial service and healthcare sectors. These enterprises were often lacking in expertise/competence in several business skills, such as financial management, business strategy, and leadership, while investors and enablers were unable to provide sufficient supports. Lack of capacity among social enterprises also hindered their access to potential investors, which preferred more mature companies. On the supply side, there was growing number of prospective impact investors interesting in Indonesia, mostly were offshore and only a few were registered in Indonesia and ANGIN is being one of them. Those foreign-based funds faced difficulties in understanding the legal framework to operate their programs in Indonesia. This also exacerbated by the inability of prospective social enterprises to comply with proper financial management. On the other hand, enablers, or entities that provide mentorship and other support services for entrepreneurs, could turn into a distraction as ventures/enterprises spent significant time applying to programs without assessing the relevance to their needs. Enablers also appeared to have limited ability to connect enterprises with investors, which should have been the end-point of enablers support programs.      The second paper to be presented was “The Role of Credit Guarantee for Small and Medium Enterprise: Evidence from Rural and Urban Areas in Indonesia” by Mohammad Ikhsan Modjo (UNDP Indonesia) and Adhitya Wardhono (Universitas Jember). Similar to the earlier presentation, this study acknowledges the gap in MSMEs financing despite its huge contribution to the GDP and employment. To slim down the gap, the government provides KUR (Kredit Usaha Rakyat – Credit for Business Program) with lower interest rates than commercial rates, and appointed several firms to act as credit guarantors under Credit Guarantee Scheme. However, low financial literacy skills and high business risk were still among the biggest constraints for MSMEs to acquire external financing support. By extracting data from Indonesia Family Life Survey (IFLS) in 2007 and 2014, this research tries to connect the characteristics of MSMEs to the type of financial institution from which they were seeking credit/loan. The results indicated that there was a shift in credit giving behavior. In 2014, the amount of capital owned by MSMEs was one of the key considerations, while in 2007, MSMEs sector and owner’s characteristics played larger role. The involvement of credit guarantor apparently did not have any significant impact yet due to unclear technical direction and limited capability. For the complete presentation and Q&A session, please refer to the videos and materials provided.