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Beyond the catch: How fish can fuel a healthier Indonesia

Posted on by Deepesh Singh

As Indonesia continues to build its economic growth based on the foundation of its rich natural resources, a critical opportunity lurks within its waters in the form of fish and other aquatic foods. Often called “blue foods,” fish and aquatic foods are a dietary staple for millions across the archipelago. Fish plays an essential role in meeting the nutritional needs of Indonesians. Between 2017 and 2022, the country’s per capita fish consumption has climbed steadily from 47.34 kilograms to 57.27 kilograms, as per December 2023 data from Statistik Kementerian Kelautan dan Perikanan. This rise signals the increasing role of fish in the Indonesian diet. Yet despite this growth, malnutrition, particularly among children, persists alongside widespread micronutrient deficiencies.

This paradox—high fish consumption alongside malnutrition—points to significant gaps in dietary intake and highlights the urgent need for policies that promote nutrition-focused blue food systems. Take East Nusa Tenggara as an example. The province faces the highest case of stunting in Indonesia at 37.9%, way above the national average of 21.5%, despite a per-capita fish consumption of 53.06 kg, only slightly below the national average.

To understand the paradox, we must dive into the heart of the fish supply chain, which comprises the country’s small-scale fishers. More than 10 million people are involved in small-scale fisheries in Indonesia, around 5 million of whom engage in fishing mainly to feed their households. For these communities, fish serves as a source of sustenance and income, which leads to trade-offs that can limit the nutritional benefits they derive from their daily catch.

Research from MSC Indonesia and Bappenas reveals that many fishers struggle to consume nutritious seafood themselves despite their vital role in the fish supply chain. While fish is a staple in their diets, fishers often sell high-quality fish to earn a living and consume lower-value fish at home. During lean seasons, this challenge intensifies and forces many to turn to less nutritious options, such as instant noodles. When fishing yields are low, fishers often buy cheaper, lower-quality fish from local markets. Price, rather than nutritional value, drives fish selection in these households. This behavior reflects broader economic hardships and limited nutritional literacy in low-income coastal communities.

Fishers also widely practice traditional preservation methods, such as salting and drying, to ensure food security during off-seasons. However, these methods can reduce the nutritional value of the fish. Consequently, many fisher households rely on simple meals of fish, rice, and sambal (chili paste) with minimal use of vegetables or nutrient-dense foods. Although fish remains a dietary mainstay, the unchanging preparation and preservation techniques limit their intake of essential fatty acids, vitamins, and other vital nutrients. For young children and new mothers, the lack of dietary diversity hampers ability to achieve optimal nutrition, particularly in the crucial first 1,000 days of life, and contributes to stunting and other malnutrition linked growth and development delays.

The lack of nutritional knowledge also affects dietary choices among pregnant and lactating women, who can benefit greatly from nutrient-rich seafood if they are empowered to make informed dietary choices. Limited knowledge, access or affordability of their specific dietary needs can leave vulnerable populations, including children, women, and the elderly, with nutritionally inadequate diets.

The current state of nutrition and dietary practices among fishers highlights a critical opportunity: Around 69% of Indonesia’s poor population lives in coastal areas, where many engage in fishing. Enhancing fishers’ access to nutritious blue foods could significantly benefit their health and well-being alongside that of the broader low-income coastal communities they represent.

Indonesia’s blue food economy has a unique opportunity to catalyze improved nutrition outcomes nationwide. Realizing this potential requires a holistic approach that enhances awareness, affordability, and accessibility and integrates blue foods into existing systems and practices.

First, the government and private sector should collaborate to improve the affordability and availability of nutrient-dense fish. Strategies, such as subsidies for farming high-value species, along with community-driven fisheries that prioritize local consumption can broaden access to these resources. In underserved areas, as demonstrated in India, initiatives to increase the availability of nutrient-rich fish can diversify diets and reduce the dependence on less nutritious alternatives.

One transformative approach lies in the incorporation of blue foods into national nutrition and social protection programs. Examples from other regions, such as the Philippines, show that integrating fish into social safety nets can yield significant health benefits. In Indonesia, integrating blue foods into social assistance initiatives, such as the Bantuan Pangan Non Tunai (BPNT) program, could help achieve this goal by providing essential foods to vulnerable families. The expansion of these programs in coastal areas would ensure that more nutritious seafood reaches households in need.

Likewise, promoting fish-based options for pregnant and breastfeeding women through the Program Keluarga Harapan (PKH) can help enhance the nutritional outcomes for vulnerable populations. Moreover, the anticipated launch of a national school meal program offers a valuable opportunity to incorporate fish-based meals in schools, especially in regions with high blue food production. This inclusion would enhance children’s nutrition and develop healthy eating habits early on.

Another crucial step is increasing nutrition literacy among fisher communities. Despite fish being a staple in their diet, many remain unaware of its specific health benefits, such as the role of omega-3 fatty acids, essential vitamins, and minerals in maintaining overall well-being. Community-based education programs delivered through local health clinics, schools, and fishing cooperatives can help these communities better understand the nutritional value of various fish species and the importance of nutrient-preserving preparation methods. Tailored information, education, and communication (IEC) materials, cooking demonstrations, and the training of community health workers can empower households to make healthier food choices. These initiatives can highlight the value of a balanced diet to help maximize the intake of essential macro and micronutrients.

Fostering dietary diversity through cultural and behavioral changes is equally important to complement education. Social and behavior change communication (SBCC) campaigns can encourage healthier cooking methods and promote the inclusion of locally available fruits and vegetables alongside fish. Moreover, Indonesia’s vibrant cultural festivals that celebrate fisheries—such as those featuring crabs or grouper—offer unique opportunities to engage communities. Nutrition experts can use these events to promote health literacy through recipe competitions, cooking demonstrations, and interactive sessions that underscore the importance of diverse and balanced diets.

The Indonesian government has already shown a strong commitment to advance blue foods and improve nutrition outcomes. Indonesia can unlock the full potential of its blue food economy if it combines education, economic support, and cultural engagement with strategic program integration. By doing so, the nation will be able to nourish its people and set a global example of how aquatic resources can drive sustainable and equitable health outcomes.

This article was first published in The Jakarta Post on 27th November 2024.

Beyond fish curries a celebration of Bihar’s traditional fish recipes

Posted on by Saumya Dixit

This fish recipe book, part of the JEEViKA Special Purpose Vehicle for Agriculture Transformation (JSPVAT) initiative, showcases traditional fish preparation methods across Bihar. Supported by the Bill & Melinda Gates Foundation, MSC, and WorldFish, it promotes the nutritional benefits of fish consumption, preserves cultural heritage, and empowers local communities through sustainable aquaculture. By encouraging healthy diets and fostering culinary skills, this initiative strengthens livelihoods and supports Bihar’s local economy.

Click here to download the Hindi version of the recipe book.

Impact of digital platforms on microenterprises: Bangladesh country findings

Posted on by Saumya Dixit

A study by MSC and Busara, supported by the Bill & Melinda Gates Foundation, examined how digital platforms impact microenterprises across four different geographies. In Bangladesh, platformed microenterprises experience higher income and profit. Sector, location, and gender influence platform usage and payment preferences, with a notable reliance on cash in rural areas and mobile money in urban settings. Women microentrepreneurs rely heavily on spouses for business decisions, which underscores the need for tailored financial inclusion strategies​. 

Read this country pullout document for detailed insights and recommendations to unlock the potential of these platforms for inclusive growth of microenterprises.

From Ration Shops to Nutrition Hubs: A Nutritional Revolution in the Making

Posted on by Deepesh Singh

Imagine walking into a local fair price shop (FPS) and finding not just rice and wheat but a vibrant array of nutrient-rich foods, from fresh vegetables to fortified grains and pulses. This would be a dream come true for someone like Lakshmi, a mother of three from rural India who relies on her local FPS to feed her family. Every month, she visits the nearby FPS to collect rice and wheat. Yet despite this access, Lakshmi struggles to provide her children with a balanced diet, because of the rising prices of vegetables, lentils, and milk.

For millions like Lakshmi, India’s Public Distribution System (PDS) has been a lifeline ensuring access to staple foods. While it has successfully addressed caloric needs, it falls short in providing a diverse and balanced diet. The National Institute of Nutrition’s “What India Eats” report shows that people’s reliance on cereals leaves significant gaps in dietary diversity, with insufficient intake of essential foods, such as legumes, milk, and vegetables. These deficiencies are a pressing public health concern. But what if FPSs can offer more?

A recently launched initiative by Union Minister Pralhad Venkatesh Joshi seeks to transform the role of FPSs to address this issue. It involves a pilot project to convert 60 FPSs into ‘Jan Poshan Kendras’ across Gujarat, Rajasthan, Telangana, and Uttar Pradesh. These nutrition hubs are set to provide a wider range of nutrient-dense foods at affordable prices while creating new income opportunities for FPS dealers. Here is how this transformation can succeed to nourish the families of millions of Indians like Lakshmi:

1) Identification of nutrient-dense commodities: The first step is to decide which healthy food should be sold in these hubs. These items must be prioritized based on their nutritional value and ease of inclusion. Priority should be given to non-perishable items with high nutritional value and ease of storage, such as pulses, fortified foods, and oil. As supply chains mature, perishable items, such as fresh vegetables and dairy, can be gradually introduced.

Nutritional Value and Ease of Inclusion in FPSs

2) Establishment of efficient supply chain and market linkages: A well-organized supply chain is vital to get nutritious food into these shops. This can be done through partnerships with FMCG aggregators, farmer producer organizations (FPOs), ministries, and cooperatives. Moreover, these supply chains must be integrated with market linkages to provide farmers with a reliable outlet for their produce and allow FPSs to access fresh and diverse food items at affordable prices.

A centralized digital platform that organizes ordering, invoicing, and analytics can make the process smoother. This platform will allow FPS dealers to place orders with different aggregators, track inventory, and monitor sales. FPS dealers must receive training to navigate this digital interface.

3) Diversification of products for profitability: Apart from nutritious food, FPS dealers can also sell other everyday items, such as cleaning supplies and personal care products. This will attract more customers, increase sales, and improve their income, making the nutrition hub a more financially viable model.

4) Community awareness and engagement: The success of nutrition hubs will depend on how well communities understand and embrace them. Awareness campaigns should be launched to inform families about the benefits of balanced nutrition and the availability of healthy food at their local FPSs. Frontline workers, such as Accredited Social Health Activists (ASHAs) and Anganwadi workers (AWWs), can be vital to educate the community.

Monitoring the effectiveness of these campaigns will also be crucial to ensure that they reach the intended audience and lead to meaningful behavior changes.

Through strong partnerships, community engagement, and efficient supply chains, we can turn these shops into nutrition hubs that fight hunger and promote health and well-being. For Lakshmi and millions like her, this could truly be a nutritional revolution in the making.

This article was first published in the Krishi Jagran website on 6th November 2024.

Formalizing businesses in Bangladesh: How women entrepreneurs see the trade licensing process

Posted on by Saumya Dixit

Amina wants to transform her home-based craft business into a thriving enterprise in Dhaka. She is talented and pours her heart into every piece of her intricate, handcrafted jewelry. However, she has failed to expand her business as she cannot access credit because she lacks a trade license.

The lack of trade licenses significantly hinders the formalization of Bangladesh’s cottage, micro, small, and medium enterprises (CMSMEs). Women in Bangladesh have a majority ownership of only 1.7% of formal firms in Bangladesh, a stark contrast to the global and regional averages of 14.5% and 9.6%, respectively. More than 90% of Bangladesh’s 7.8 million businesses are informal, primarily due to the absence of trade licenses. Informal operation restricts access to formal finance and business development services, which limits growth potential, especially for women entrepreneurs.

Although the regulator allows small-scale traders to open bank accounts without trade licenses, businesses cannot obtain credit from banks without a trade license. Their choices become limited to their informal network or the higher-priced MFI loans. The acquisition of trade licenses typically requires significant time, cost, and effort and involves several steps, which include the submission of the necessary documentation to the local city corporation or municipal authority. Moreover, the license must be renewed annually. Only since September 2023 has Dhaka South City Corporation started to issue five-year business licenses. The government expects to roll out a similar program countrywide soon.

We conducted a comprehensive study of CMSMEs through the Women Business Diaries project, supported by the Bill & Melinda Gates Foundation. This research identified several demand- and supply-side barriers that hinder women’s access to formal credit. Among these, the lack of a trade license was a significant obstacle for women entrepreneurs. Only 48% of entrepreneurs from our sample of 413 female and 76 male entrepreneurs had ever possessed a trade license. However, this proportion varies significantly between male and female entrepreneurs, as male entrepreneurs are more likely to have a trade license (p=0.000).

However, gender is not the only factor that affects a woman entrepreneur’s ability to obtain a trade license. Our research examined factors, such as business location, type of premises (home-based or separate), business scale, owner’s education level and age category, type of business, and engagement in activities, such as securing bank loans or conducting sales beyond the local market. We employed a statistical comparison of proportions with Bonferroni correction for this analysis.

Our analysis revealed that location, type of premises, and type of business were not statistically significant factors that affect women entrepreneurs’ possession of a trade license.

However, several other factors showed statistically significant differences in their association with the possession of a trade license, as listed below.

  1. Business owners’ education level: Graduate or postgraduate women entrepreneurs are more likely to have a trade license than those who lack formal education (p=0.004) or have attained primary-level (p=0.004) or secondary-level education (p=0.044). Moreover, female business owners who lack formal education are significantly less aware of the trade application process than those who have received some education.
  2. Business owner’s age: Younger women entrepreneurs are less likely to have a trade license than those in the middle age (p=0.020) or older age categories (p=0.000). This could be because they realize the benefits of a trade license as they gain business experience. Moreover, a trade license becomes essential when owners want to scale their business and avail of credit and other formal support.
  3. Engagement in sales outside the local market: Women entrepreneurs who engage in sales outside their local market are more likely to have a trade license than those who only cater to their local market (p=0.016).
  4. The scale of business: Women entrepreneurs with average monthly revenue of more than BDT 100,000 (USD 837) are more likely to have a trade license than those with average monthly revenues that range from BDT 25,000 (USD 209) or below (p=0.000), 25,001 to 50,000 (USD 209 to USD 418) (p=0.000), and BDT 50,001 to 100,000 (USD 418 to USD 837) (p=0.001). This can, in part, be because women entrepreneurs with smaller businesses that generate monthly average revenue up to BDT 25,000 (USD 209) were more likely to report being unaware of the requirement for a trade license.
  5. Location of business: Similarly, female business owners in rural areas are more likely to be unaware of the trade license requirements than those in urban areas (p=0.009).

In our sample, 82% of the 43% of women entrepreneurs who have obtained a trade license currently have active or renewed licenses, and 86% have licenses registered in their names. Among the 51% who never applied, 59% expressed uncertainty about the need for a trade license, while 27% cited the burdensome paperwork as a deterrent. The following figure outlines other reasons for non-application:

Additionally, we found several ecosystem-level complexities. The annual renewal process often requires multiple visits to licensing offices, which can be difficult for women who lack their family’s support or must travel to urban areas to apply for the license. Further, the acquisition of a trade license often involves registration fees, renewal fees, and other administrative costs. It may often also involve bribes to intermediaries. These costs present a significant barrier. Such challenges highlight the need for more accessible and streamlined licensing procedures that accommodate the unique circumstances of women entrepreneurs in Bangladesh. The section below outlines four recommendations for stakeholders to ease the process of issuing trade licenses for women entrepreneurs.

  1. Simplified processes to issue trade licenses: Countries, such as Singapore, New Zealand, the UK, and Australia, issue digital trade licenses in one to three steps. On the other hand, the acquisition of a trade license in Bangladesh requires seven to eight steps. Bangladesh may also consider the use of its national identity cards to issue trade licenses as several other countries currently do. The reduction of the steps to get a trade license will enable more businesses to move toward formalization.
  2. Extended channels: The use of existing channels, such as NGOs, mobile financial service (MFS) agents, and banking agents, to support women in the trade license application process could improve access for women entrepreneurs. Additionally, the establishment  of centers in rural areas could help women in underserved regions obtain and renew their licenses without traveling long distances to urban centers. This combined strategy will guide them throughout the application process and significantly enhance convenience and accessibility for women in business.
  3. Subsidized application and renewal fees: Fees for trade licenses in Bangladesh range from BDT 100 to BDT 40,000 (USD 0.84 to USD 335). Relevant incentives, for example, discounted rates for timely renewals, could reduce financial barriers for women entrepreneurs and encourage more businesses to formalize their operations. Additionally, nudges, such as free renewals before the license expiry, will encourage more small businesses to opt for a trade license. Kenya has adopted a similar approach to push the formalization of its small businesses.
  4. Awareness campaigns: Educational and outreach efforts can effectively inform women entrepreneurs about the benefits of obtaining a trade license, such as access to financial services, increased credibility, and legal protection. These efforts can feature success stories to demonstrate the advantages of formalized businesses, which would inspire others to follow suit. Additionally, the use of social media to guide women through the application process can create a supportive community for aspiring entrepreneurs.This approach promotes formalization and keeps women updated on developments, such as the government’s initiative to extend trade license validity.

This blog underscores that the trade license policy and approach must be reformed to promote women’s entrepreneurship in Bangladesh. The government can address the existing barriers and implement measures to facilitate greater participation of women in the formal economy. This would empower women and contribute to the broader economic growth and the successful graduation of Bangladesh from the Least Developed Country (LDC) status.

Gender-intelligent banking (part 1): A practitioner’s perspective on designing financial services for women

Posted on by Saumya Dixit

Women in Bangladesh own 37.2% of bank accounts and hold 33.5% of the country’s total bank deposits, per the Bangladesh Bank’s WFID Dashboard as of Q1 2024. Yet, they continue to grapple with significant barriers when they seek access to credit. They hold only 20% of bank loan accounts, which represents 19% of the total loans by value. The limited credit availability restricts women’s financial agency and business growth and undermines their potential contributions to economic growth.

MSC’s Women Business Diaries research, which involved around 500 business owners in Bangladesh, offers valuable insights into the development of gender-intentional products for women and women entrepreneurs. This two-part blog series discusses the challenges practitioners face in the creation of gender-intentional products and services.

We studied access to credit in-depth and spoke with multiple bankers from bank head offices, branches, and credit officers about their experiences and approaches to lending to women entrepreneurs. This blog summarizes our discussions with them and the challenges they face when they design financial products and services for women entrepreneurs.

Restrictive socioeconomic norms and cultural barriers that prevent interaction with female customers

Bankers acknowledge that social norms hinder women’s access to formal financial products and services. Women entrepreneurs often struggle with limited financial independence and decision-making power due to restricted mobility, lack of control over resources, and traditional gender roles that confine them to domestic responsibilities. While women may legally own businesses, male household members frequently make the financial decisions. A credit officer from a prominent bank observed that despite the establishment of dedicated women’s banking desks, interactions with female account holders are often dominated by male relatives, particularly in loan negotiations. Due to security concerns and social norms, bankers and female customers prefer to speak with the husbands or men in the household. This dynamic limits women’s ability to express their financial needs effectively. In many instances, it leads to a situation where women prefer to avoid the use of formal bank accounts altogether.

The dependence on men is not limited to interactions. A product manager notes that even when women seek credit independently, their limited collateral and credit history often require male relatives, who usually control family assets, to co-sign loans.

The implications of this dependence on men result in many more challenges. For example, it undermines bankers’ trust in women’s financial decision-making and business management skills. Further, bankers’ limited experience interacting with women complicates their ability to evaluate women’s business potential and design tailored financial products. For instance, savings bank accounts in Bangladesh often require a minimum deposit of at least BDT 10,000 (USD 84), which is prohibitive for marginalized women who have small and irregular savings. This forces them to store money informally, which increases the risk of loss or theft.

A lack of understanding of female customers also affects credit services. Most women know that banks require lengthy documentation and take time to process applications but are unaware of credit guarantee programs that could ease access. Only 31% of female business owners know about programs that facilitate access to credit. Furthermore, bankers assume women do not maintain business records, yet our study finds that 63% of women entrepreneurs keep inventory records, while 68% track income and expenses.

Lack of trained staff who can build an understanding of women’s customer segments

By default, banks generally train their staff in banking and helping male customers. Many bankers have preconceived notions about women’s financial roles. Most banks do not have a gender-aware training system. They also lack female representation. As of December 2023, women comprised only 16.37% of the total workforce in Bangladesh’s banking industry. This amounts to 33,346 female employees compared to 170,350 male employees. This underrepresentation extends to decision-making levels. The proportion of women on bank boards declined from 14.22% in 2022 to 13.51% in 2023.

Moreover, more than 16% of women in banking left their jobs in 2023, which indicates a growing trend of female professionals who seek opportunities outside the sector. These statistics highlight a precarious environment where female customers have limited access to female staff for support and guidance and lack representation in leadership roles to advocate for their financial needs. As a result, banks are often perceived as male-dominated spaces and are not the first choice of cottage, micro, small, and medium enterprises (CMSMEs) when they apply for loans.

Most entrepreneurs want credit from banks. In our study, 72% of women and 76% of men seek credit from banks. However, microfinance institutions (MFIs) frequently outperform banks as they offer more accessible and relevant solutions focused primarily on female borrowers.

Poor implementation of policy measures that could enhance interaction with women entrepreneurs

Despite policymakers’ efforts, women in Bangladesh face barriers to financial inclusion, such as legal frameworks that restrict independent access to banking services or loans without male consent. Women find it particularly challenging to obtain a trade license due to complex bureaucratic procedures and gender bias. These barriers further restrict their access to formal financial services.

The Bangladesh Bank’s efforts to bridge the gender gap

The Bangladesh Bank (BB) has launched several initiatives to improve women’s access to formal finance. Key measures include:

  • The establishment of the Women Entrepreneurs Development Unit (WEDU) and dedicated desks in bank branches;
  • The introduction of a 1% cash incentive for timely loan repayment by women;
  • A mandate for banks to allocate 10% of their CMSME loan portfolio to women, which increased to 15% in 2024;
  • The provision of low-interest loans through a refinancing fund worth BDT 30 billion (USD 250.8 million) and the prioritization of women in other refinancing programs;
  • The reservation of 10% of the credit guarantee fund for women and the allowance of loans up to BDT 25,00,000 (USD 20,900) without collateral;
  • The simplification of loan applications and the development of financial literacy guidelines focused on women and;

The launch of entrepreneurship development programs with at least 30% female participation.

Despite Bangladesh Bank’s various initiatives to improve access to formal credit for women, their impact at the grassroots level remains minimal. For example, the regulator has relaxed the requirement for personal guarantors through multiple circulars. However, the lack of practical enforcement of these regulations and the absence of viable alternatives to personal guarantees has led banks to demand multiple personal guarantees. This has become a significant barrier for thin-file borrowers when they seek access to formal credit. However, bank staff and credit officers maintain that such practices are necessary to safeguard the bank’s interest and ensure the timely repayment of loans.

Designing financial products for women must begin with a gender-intentional approach

The banking sector’s failure to engage with the female segment and understand it limits its ability to serve it effectively. A clear, streamlined, standardized, and action-oriented framework to assess the potential for services and their impact can complement efforts to develop gender-sensitive approaches within banks.

The process of designing financial products for women entrepreneurs must be both intentional and nuanced. These may include targeted initiatives, such as gender sensitization for staff through gender-disaggregated data, to create evidence-based strategies and adopt design thinking in product and service development.

Insights from our work have helped commercial banks in Bangladesh gain a deeper understanding of the women’s MSME segment. This has led to product innovations. We discuss this in the second part of this series: Gender-intelligent banking (part 2): Small changes, big wins: How small changes by FSPs can result in big wins. Read the next part here to learn more.