Increasing Competitiveness, Bank Indonesia Encourages MSMEs to Develop Green Business Models

Illustration (Photo: Doc. Antara)

JAKARTA - Bank Indonesia (BI) continues to support and prepare Micro, Small and Medium Enterprises (MSMEs) in transforming towards a green business model. It is stated that this initiative can support a sustainable economy.

Deputy Governor of BI Filianingsih Hendarta said the real steps were to encourage MSMEs to transition into MSMEs that practice green principles while at the same time strengthening competitiveness in responding to various business opportunities and contributing to a sustainable national economy.

"The classification of business models in the eco-adopter category is intended for MSMEs that are starting to adopt environmentally friendly practices, but sustainability is not part of the core business model where MSME business processes are not fully environmentally friendly, eco-entrepreneurs for MSMEs that have adopted environmentally friendly practices," he said in a written statement quoted on Sunday, July 30.

According to Filianingsih, this business model is expected to become a standard that can be adopted by ministries/agencies in classifying MSMEs with an environmental perspective and become a benchmark and/or criteria for environmentally friendly financing.

"There is an important goal in encouraging MSMEs to be environmentally friendly, strategies that can be carried out by MSMEs to transform into green, as well as the potential and benefits that can be achieved," he said.

Meanwhile, this was conveyed by Filianingsih in a green talk show with the theme UMKM Go Green: Sustain and Go Global this week. Also present were representatives from the Ministry of Industry, as well as other business people.

"Bank Indonesia hopes that stronger collaboration and synergy can be established from various parties in order to create MSMEs that are competitive and contribute to a sustainable economy as a new force in the Indonesian economy that will become increasingly evident," he concluded.