Case study: Leasing – Strategic Research of Leasing Market In Aceh

The challenge

The client is one of the largest multilateral sources of debt and equity financing companies for private enterprises in developing countries. It planned to promote private sector investment, so as to reduce poverty and recover the local economy in Aceh after the tsunami disaster in December 2004.

The objectives of the study were to assess demand size and characteristic of leasing market in Aceh as well as understand the behavior, needs and preferences of leasing customers (small and medium enterprises and large companies).

The process

Spire prepared an analysis of desk research on published articles, government rules and regulations and conducted in-depth interview with:

Leasing industry players (bank, leasing company, and other financial institutions)
Small and medium enterprises (automotive, manufacturing, construction, transport, logistics, etc.)
Large companies (various industries)
Local government official (BPS, Trade Ministry, etc.)

The results

Our client used Spire’s report as their reference to enter leasing industry in Aceh.

Project deliverables included:

Introduction Macro Economic (industry structure and characteristic) in Aceh Region
The demand size of Aceh leasing industry by region, assets (productive assets and small ticket items) and industry (value and volume) for historical (2006) and future (2007 to 2009)
In-depth analysis of competition among players (banks and non-banks) and various types of leasing products offered
Level of knowledge on leasing industry in Aceh
Types of assets that are required in Aceh
SMEs experience and interest on leasing in Aceh
In-depth analysis of the legal, regulatory and policy framework affecting leasing market in Aceh
Attractiveness of leasing market and demand in Aceh

Potential segment to focus on decision whether to enter into leasing market in Aceh