President Jokowi Pushes for Better Access to Capital for MSMEs

Cabinet Secretary Pramono Anung joins the 2022 Financial Services Industry Meeting and the Launching of the Indonesian Green Taxonomy, virtually from the office of Cabinet Secretariat, Jakarta, Thursday (01/20). (Photo by: PR/ Rahmat)

President Joko “Jokowi” Widodo pushed for better access to capital for Indonesia’s Micro, Small, and Medium-sized Enterprises (MSMEs) through breakthroughs and concrete actions.

The President went on to say that though MSMEs are large in number, the ratio of bank credit to that sector is only 20 percent. Therefore, the ratio must be increased to 30 percent by 2024.

“To achieve that figure, we cannot only depend on regular growth. We need strategies that apply breakthroughs, as well as consistent and sustainable serious measures,” he said in his remarks at the 2022 Financial Services Industry Meeting and the Launching of the Indonesian Green Taxonomy, virtually from the Bogor Presidential Palace, Thursday (01/20).

He also emphasized that access to capital for businesses must be improved and the disbursement of capital must be speeded up to provide better opportunity for the youth to start a business or develop their businesses.

The MSMEs also play crucial role in economic recovery measures that are projected to address supply chain issues arising from the gap between high demand and low supply since global supply chain has not fully recovered yet.

“The success of MSMEs to transform during the pandemic is an important asset to help them improve to the next level and to drive the ongoing economic development,” he said.

On that occasion, the President also said that infrastructure development is continue to be accelerated. In addition, down streaming of mineral products and the export of mining products will also be intensified. He also reminded all that Indonesia will stop exporting nickel, copper, lead, and gold in raw materials.

The Government will also enhance development of industrial areas and special economic zones that are expected to be new centers of economic growth which can increase export values of manufacturing sector and create added value to the national economy.

Moreover, structural reforms will also continue to be adopted by focusing on environmental, social, and governance economic development. The Government will also continue to encourage digital transformation to achieve sustainable economic growth.

“I look forward to support from financial services sector and industry in speeding up national economic recovery and materializing structural reforms,” the President remarked. (TGH/UN) (RAS/MMB)