Overview on informality: Informal enterprises, primarily microenterprises in services, offer flexibility and low costs but face limited growth opportunities due to higher compliance costs and regulatory burdens; informality is prevalent in services across regions, while formal manufacturing dominates in North Sumatra, with women-led businesses equally present in both informal and formal sectors.

Female Leadership: Women lead large formal businesses but are underrepresented in small informal firms and top management roles; they are concentrated in Bali (informal) and East Java (formal) due to local influences, and their leadership in export markets enhances firm performance, reflecting gender-sensitive hiring practices and a need for inclusive leadership.

Productivity in women-led businesses: Women-led medium enterprises exhibit higher labor productivity than men-led businesses, with competitive total factor productivity; however, productivity advantages decline in larger firms, and digital adoption disparities exist, with digital tools boosting sales and diminishing productivity gaps, highlighting the need for improved digital readiness and regulatory frameworks.

Policy recommendations: To address gender disparities in productivity and support women's leadership in Indonesia, policies must prioritize holistic interventions by simplifying regulatory processes, strengthening legal frameworks, supporting gender-sensitive workplace policies, promoting digital technology adoption, and enhancing vocational training, thereby fostering equitable business development and reducing barriers for women-led enterprises.