Remarks of President of the Republic of Indonesia at the BRI Microfinance Outlook 2024, at BRILiaN Tower, South Jakarta City, Special Capital Region of Jakarta, March 7, 2024

Bismillahirrahmanirrahim.

Assalamu’alaikum warahmatullahi wabarakatuh.

Good morning,

May peace be upon us all.

Distinguished Ministers and Deputy Ministers;

Distinguished President Director of BRI and the Board of Directors and the BRI big family;

Distinguished [Acting] Governor of DKI Jakarta;

Distinguished leaders of Bank Indonesia, OJK [Financial Services Authority], and LPS [Deposit Insurance Agency];

Academics, MSME entrepreneurs;

Ladies and Gentlemen,

We know that the number of our MSMEs is approximately 65 million, more or less. The contribution of MSMEs to our GDP is 61 percent, which is enormous, while employment in the MSMEs sector is 97 percent, which is also huge. Therefore, it’s not the wrong thing if we pay special attention to MSMEs. And I am happy with what the Managing Director of BRI said earlier that digital banking down to the bottom is really functioning at BRI.

Ladies and Gentlemen,

You can imagine, to manage 740 thousand stalls and agents of BRILink is not something easy. The President Director told me earlier, there are Rp1,400 trillion transactions of it every year. To handle small amount of money that were previously controlled by loan sharks, “titil” banks everywhere, is now being taken over by BRI. Such actions deserve our appreciation. The Government must also be involved. As for People’s Business Credit (KUR), the Government subsidy reached Rp46 trillion this year, so that the interest can be trimmed to 3 percent and 6 percent for micro and small businesses. Please remember that’s small since Rp46 trillion is a big sum of money, you can build 40 reservoirs with that money if you want.

What has been done in terms of financing? I am happy that BRI holdings of UMi [Ultra Micro] are coming in. UMi customers reached 8.2 million people who received credit of only up to Rp10 million, PNM [Fostering the Economy of the Prosperous Family) Mekaar which can provide a maximum credit of Rp25 million, and KUR (Smallholder Business Credit) which can provide credit of up to Rp500 million. UMi have 8.2 [million] customers, while PNM Mekaar reached 15.2 million.

In 2015, I remember PNM Mekaar only had approximately 400 thousand customers, now it has reached 15.2 million. Mr. Muhammad Yunus of Grameen Bank won the Nobel because Grameen Bank has 6.5 million customers. Managing Director of BRI Mr. Sunarso should have been also awarded Nobel since (bank with) 6.5 million customers received the award, while PNM Mekaar have 15.2 million of customers and UMi have 8.2 million. I don’t know the total number of KUR customers; how many is it? 16 million? That’s enormous. I don’t know, maybe he didn’t receive the award since no one recommended him. Our related parties should take care of things related to Nobel recommendation.

What I have known, let’s talk about PNM Mekaar, from 400 thousand of customers, it leaped to 15.2 million with the credit given reached Rp244 trillion. I remember in 2015, it only reached approximately Rp800 billion, now it rose to Rp244 trillion. That’s a very big jump. Things like this should be appreciated.

And what I like is, I saw product improvement on the ground when I ask the customers. Apart from financing, secondly, is product improvement.

Packaging. Last week, I met 5,000 PNM Mekaar customers. The packaging of our MSMEs crab crackers is now like this. Previously, the packaging merely ordinary plastic that being sold everywhere, now it’s like this. The product now can be sold in modern retailers or hypermarts, anywhere. Even though not all of the product packaging of our MSMEs is like this, but perhaps 40 percent of it has similar packaging. The name of the crackers is also good, Mama Muda (lit. young mom). Very good, the way to name it is also fantastic, I’m delighted. Doesn’t mean that I’m favorable to young mothers, no. I’m glad that the way to name it is so good, Mama Muda Crab Crackers.

This is what I found, too. Let’s see, this one already be exported. The product owner took a credit of Rp5 million, but can export garlic chili sauce, onion chili sauce with such packaging. A smallholder, household business with a loan of Rp5 million at PNM Mekaar can have such package, this is extraordinary. This is what we must continue to push for. Banks and the Government must provide encouragement to strengthen our competitiveness to enter the export market. This product has been exported to neighboring Brunei and Malaysia. This product is named Lontara. Lontara, what a nice name.

These are the strengths of small businesses that I mentioned at the beginning, contributing 61 percent to our GDP with employment absorption of 97 percent. Therefore, I really appreciate the event of BRI Microfinance Outlook every year so we can decide where and what strategies we have to formulate so that our MSMEs can truly be competitive, can compete with other countries.

That concludes my speech on this auspicious occasion.

By saying bismillahirrahmanirrahim, I hereby open the BRI Microfinance Outlook 2024.

I thank you.

Wassalamu’alaikum warahmatullahi wabarakatuh.

(GWH/MUR)