President Jokowi Urges Banks to Speed Up Loan for MSMEs

President Jokowi on Thursday (12/07) opens the 2023 UMKM Expo(rt) Brilianpreneur at the Jakarta Hall Convention Center, Jakarta. Photo by: PR of Cabinet Secretariat/Oji)

President Joko “Jokowi” Widodo has called on banks to improve financing for micro, small, and medium enterprises (MSMEs).

“MSMEs financing must be made easier. Currently the share of banking loan to MSMEs is only 21 percent of the total existing loan, and the biggest lender is BRI,” the President said at the opening of the 2023 UMKM Expo(rt) Brilianpreneur, Thursday (12/07) at the Jakarta Hall Convention Center, Jakarta.

The President said that the number of MSMEs loans in Indonesia is lower compared to other countries, including China (65 percent), Japan (65 percent), and India (50 percent).

“I have told Minister of SOEs to work with central bank Bank Indonesia and the FSA to improve the regulations. Not all of our MSMEs have collateral assets, so we must take into account the business potential as well,” the President stated.

On that occasion, the President also expressed his appreciation to MSMEs entities and partners who have supported the national economy and created jobs for communities.

“We are aware that 61 percent of our GDP is supported by MSMEs, micro businesses, small businesses, and medium businesses, and 97 percent of labors are absorbed by MSMEs,” the President said.

The President also underscored the importance of MSMEs access to the digital ecosystem so that they can compete in local markets, export markets, and global markets.

The President also extended his appreciation to the MSMEs exhibition organized by State-Owned Bank BRI. According to the President, the event, which was first held in 2019, has brought MSMEs entities and their partners. The President also expressed hope that in the future the exhibition can be held on a bigger scale.

“Let me extend my appreciation to this Brilianpreneur event. I have seen that the products are very well curated. I have also seen beautiful packaging, good branding, and the most important thing, the excellent interaction between buyers and the MSMEs,” the President remarked. (DND/UN) (RI/MUR)