Intelligent SME.tech Issue 08 | Page 57

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APAC

BRI MICROFINANCE OUTLOOK SPURS POSITIVE GROWTH IN INDONESIAN MICROFINANCE AND SME SECTORS

Supported by Indonesia ’ s largest Micro , Small and Medium Enterprises ( MSMEs ) bank , Bank BRI , BRI Research Institute announced its commitment to support microfinance institutions at the BRI Microfinance Outlook 2021 event . Entitled Adapting Through Innovation and Synergy , the event was attended by Minister of Co-operatives and Small and Medium Enterprises , Teten Masduki , Chairman of the Board of Commissioners of the Financial Services Authority ( OJK ), Wimboh Santoso , State- Owned Enterprises ( SOE ) Deputy Ministers , Pahala N . Mansury and Kartika Wirjoatmodjo , as well as BRI President Director , Sunarso .

With the BRI Microfinance Outlook 2021 , BRI aims to succeed the growth of MSMEs amid economic uncertainty . BRI ’ s support for MSMEs will remain high , especially as the MSMEs ’ role has caused a significant impact on the national economy .
According to a data by the Ministry of Co-operatives and Small and Medium Enterprises , in 2018 , there was a total of around 62 million micro-entrepreneurs in Indonesia . The figure includes 757,000 small businesses , 58,600 medium enterprises and 5,500 corporations . Therefore , MSMEs ’ contribution to Indonesian gross domestic product ( GDP ) has reached over 62 % or equivalent to IDR8,000 trillion .
“ With the close relations and collaborations with stakeholders at the regional , national and global level , this year , BRI aims to advance the microfinance sector and empower Indonesian MSMEs in a synergistic ecosystem . We are looking for abundant support and collaboration to enrich our insights for the MSMEs ’ continued development . Hence , we will not stay in a stagnant situation yet be able to develop and find new sources of growth from the levels below ,” said Sunarso .
On the same occasion , Pahala N . Mansury revealed that Indonesia ’ s economy will continue to improve in the second quarter of 2021 . “ This can be seen from the increased demand of household electricity supply in Indonesia , which needs to be maintained and utilised as possible ,” said Mansury .
Mansury added that in 2021 , the SOE Ministry will focus on providing support for fulfilling infrastructure needs , funding and market access for the MSMEs ’ development and recovery . The support will be undertaken through policies and corporate actions , as well as integration between existing state-owned enterprises ( SOEs ) to make them more efficient for the advancement of MSMEs .
“ We are trying to build digital platforms and digital services for MSMEs . In terms of funding or financing , one of our Ultra Micro ( UMi ) -related initiatives includes consolidating SOEs to support the ultramicro ecosystem . Indeed , the number of ultra-micro businesses currently still require funds . We hope that the consolidation of SOEs can support the UMi ecosystem , while empowering and increasing our capabilities . We also aim to widen our financial products to savings and insurance . With this strategy , any time ultra-micro businesses aim to move up to the next step , we can achieve that ,” added Mansury .
Wimboh Santoso affirmed that stakeholders must implement a new approach for MSMEs as financing is not enough . “ They need guidance , sales channels and a complete ecosystem to ensure more quality and productivity of MSMEs ,” he said .
Government support is also crucial to strive the success of MSMEs . Teten Masduki added : “ Currently , the government is trying to create new entrepreneurs , both existing and pioneering . We set the target of around 4 % in 2024 . With the support of a financing ecosystem , an entrepreneurial ecosystem and focusing on MSMEs that accompany them , including those in incubation , we are optimistic to achieve it .” �
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