BackgroundIFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries; using our capital; expertise; and influence to create markets and opportunities in developing countries. In fiscal year 2024; IFC committed a record $56 billion; including over $22 billion mobilized to private companies and financial institutions in developing countries; leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information; visit www.ifc.org.IFC and Gender in IndonesiaGender is a cross-cutting priority for IFC; as highlighted in the WBG’s Gender Strategy. The 2024–2030 Gender Strategy expresses the bold ambition to accelerate gender equality to end poverty on a livable planet. The new strategy prioritizes three strategic objectives: end gender-based violence and elevate human capital; expand and enable economic opportunities; and engage women as leaders.IFC’s Gender and Economic Inclusion Department (GEID) works toward a private and public sector that provides women; men; and underserved communities equal economic opportunities as leaders; employees; entrepreneurs; consumers; and community members. IFC convenes the private sector and other key stakeholders in emerging markets to facilitate learning and support the implementation of private sector policies and practices to tackle barriers to gender equality and economic inclusion.Childcare is a key focus of GEID’s work in several markets; including Indonesia; recognizing that access to high-quality; affordable childcare can enable women’s access to more and better jobs. At the same time; affordable; quality childcare options are often scarce; leading many women to exit the formal workforce. World Bank’s 2024 study indicates that nearly 40 percent of Indonesian women in wage employment left their roles after marrying and having children. The difficulty of balancing family obligations with paid work means that many women are; therefore; reluctant to return to wage employment after having children.Current ResearchIFC will share non-public research done by the World Bank Group on Indonesian childcare providers with the firm during onboarding as a foundation for this market assessment.Research ObjectivesIFC seeks a firm to develop a market assessment report for private sector Early Childhood Care and Education (ECCE) services (for children under 7) in Indonesia. The research has the following objectives:*To develop an in-depth analysis of the current demand and supply for ECCE services in the Indonesian market; focusing on opportunities; challenges; and the competitive landscape for private providers.*To identify the financing gap and specific financing needs for private sector ECCE service providers; including micro; small; and medium enterprises (MSMEs) and women-owned MSMEs (WMSMEs); as well as challenges and opportunities for market growth.*Establish a business case for financial institutions to invest in the ECCE sector and their role in bridging the financing gap.*To identify potential entry points for IFC interventions and investment in this sector (both directly and indirectly through financial sector institutions).Research Questions1. Market Analysis for Early Childhood Care and Education (ECCE) Services*Evaluate the current market size (demand) for ECCE services in Indonesia using the most recent data available.*Project the growth trajectory of the ECCE market in Indonesia for the next 3 to 5 years; considering scenarios with and without additional access to finance.*Categorize the ECCE market based on various factors such as geography (urban & semi-urban vs. rural; Java vs. non-Java); age groups; size of ECCE service providers; and other pertinent typologies to identify key market segments and tailor strategies accordingly.*Estimate the total financial investment required to expand the ECCE overall market to satisfy both current and anticipated demand for childcare services.2. Private Sector ECCE Service Providers*Identify 20-25 affordable; high-quality; or scalable private sector ECCE providers across 5-7 cities in Indonesia (primarily Java and Sumatra); focusing on urban and semi-urban regions.*Analyze their characteristics (business models; size; number of employees; assets; financing model; etc.) to compare and contrast solutions; needs; challenges; and investments needed to scale up their services.*Assess the appetite and constraints of ECCE providers in obtaining financing.*Identify existing financing solutions for the ECCE market and propose additional solutions that could support ECCE providers.*Identify non-financial barriers faced by childcare providers across various typologies.3. Mobilizing Private Sector Investment*Identify key stakeholders; including investors; private ECCE providers; financial institutions; and developm