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 fulfiling 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 ultra-micro 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 saving 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.”