Business

Indonesia-Japan Push for MSME Transformation

Jakarta – Micro, small and medium enterprises (MSMEs) form the backbone of the Indonesian and Japanese economies. Including in providing employment, encouraging innovation, technology, and inclusive growth.

This was said by the Minister of Cooperatives and SMEs, Teten Masduki, during a meeting with Japan Finance Corporation (JFC) Otemachi, Chiyoda City, Tokyo, Monday (31/7/2023).

“After the COVID-19 pandemic, we continue to encourage MSMEs to transform, so that in the future MSMEs have more resilience, are more adaptive, more productive, and more sustainable,” said Minister Teten.

Recorded in December 2022, MSME credit in Indonesia grew 9.95 percent year on year (yoy). The ratio of bank credit to MSMEs also increased, from previously only 20 percent to 21.41 percent.

In fact, President Jokowi is targeting an increase to more than 30 percent by 2024. However, despite these developments, a survey conducted by Bank Indonesia (BI) shows that 69.5 percent of MSMEs currently do not have access to credit facilities.

“We have an interest in encouraging a more inclusive financing scheme so that bank credit for MSMEs is getting bigger, in line with the easier and cheaper financing for MSMEs,” said Minister Teten.

Meeting points

Minister Teten emphasized that the meeting with JFC was important for Indonesia and Japan. He also revealed several things related to the meeting.

First, sharing sessions to identify innovative and pragmatic measures to support the ease of financing and development of MSMEs.

Second, exploring opportunities for cooperation, knowledge exchange, technology transfer, and capacity building initiatives for MSMEs. Third, funding opportunities for Indonesian start-ups.

“Last or fourth, B2B (Business to Business) investment opportunities from Japanese companies connected to Indonesian MSMEs,” said Minister Teten. (InfoPublik)

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