President Jokowi Calls for Ease of MSMEs' Financing
- Antara
Jakarta – The Indonesian President Joko Widodo (Jokowi) urged that banks to provide easy access of financing for Micro, Small, and Medium Enterprises (MSMEs). This is aiming to help them escalate their market presence.
"Why do I always push for easy financing for MSMEs? If we look at the distribution of bank credit to MSMEs, it's only 21 percent og the total credit," the Head of State said at the opening ceremony of the 2023 Brillianpreneur UMKM Expo Crafting Global Connection at the Jakarta Convention Center (JCC) on Thursday.
President Widodo remarked that the largest distribution of MSMEs' credit by State-Owned Enterprise (SOEs) banks was carried out by Bank Rakyat Indonesia (BRI), with 83 percent of the total credit distributed by all SOEs banks to MSMEs.
Presiden Republik Indonesia, Joko Widodo
- BRI
Moreover, the President stated that national banking credit to MSMEs only amounted to 21 percent of the total credit. This figure is still far from China and Japan, with 65 percent, and India, with 50 percent.
Therefore, the President urged the SOEs Ministry and other authorities to improve regulations to help MSMEs access financing from banks.
"If those MSMEs have good prospects, banks should be able to provide financing for them,"
Meanwhile, SOEs Minister Erick Thohir said in his report that supporting the development of MSMEs is the government's proof of work for the people.
The Minister remarked that four years ago during a similar event, the President had encouraged SOEs banks to build an ecosystem for MSMEs with funding, market access, and assistance.
"In 2019, we have succeeded in encouraging 700 MSMEs. This year, around 30 million MSMEs had been supported to enter the digital system. Through SOEs banks' financing, we have disbursed financing totaling up to IDR 1,600 trillion until September 2023," he remarked.
Regarding market access, the minister stated that his side would ensure that all MSMEs will have an opportunity to enter the global market. He also encouraged MSMEs that have export quality to join overseas exhibitions.