Ahead of the Curve

A SENIOR WOMAN BANKER, VERA EVE LIM NOW PLAYS A BIGGER ROLE IN THE COUNTRY’S LARGEST PRIVATE BANK.

- Elisa Valenta

THE INTERNATIONAL Finance Corporation (IFC) says that while the gender gaps in labor market participation and educational attainment have narrowed, women around the world still encounter a glass ceiling when trying to reach the company boardroom, where female representation remains low. There are a lot of studies that cite the presence of female figures in a company’s management as improving the company’s performance. One was published last year by the IFC, the Women’s Empowerment Working Group, and the Indonesia Stock Exchange. According to the study, companies with more than 30% of women on their boards report an average return on assets (ROA) of 3.8% and a 6.2% average return on equity (ROE). Meanwhile, all-male board only booked an average ROA of 2.4% and 4.2% ROE.

Indonesia is already making steps forward. The study shows that out of the six ASEAN countries studied, Thailand is the most gender diverse with women holding around 20% of board seats in listed companies, followed by Indonesia and Vietnam (both about 15%). While the study does not include banking and the finance sector, as of the end of 2019, the proportion of women representatives on the boards of the top-10 largest lenders in Indonesia based on assets was close to 25% of the total – 24 women from a total of 108 directors. Women representatives in leadership positions in banking in the finance sector are also crucial, given a great deal of research has also showed that investing in women provides a higher and more sustainable yield.