Kemenkop UKM Emphasizes The Importance Of Alternative MSME Financing In APEC SMEWG

BALI - The Ministry of Cooperatives and SMEs (Kemenkop UKM) emphasized the importance of alternative financing solutions to encourage MSMEs to advance to class.

This was conveyed by the Secretary of the Ministry of Cooperatives and SMEs (Sesmenkop UKM) Arif Rahman Hakim who is also the Chairman of the Indonesian Delegation at the 56th APEC SME Working Group (SMEWG) Meeting in Seattle, United States (US).

"To overcome the challenges of financing and investment in Indonesia, the Kemenkop UKM has implemented various strategic steps to increase access to financing for Indonesian MSMEs," said Sesmenkop UKM Arif Rahman Hakim in a written statement, Thursday, August 24.

Arif said the steps ranged from the People's Business Credit (KUR) program, access to financing through PNM Mekaar or the Prosperous Family Economic Development Program and the Micro PNM service unit, to encouraging MSMEs to enter the Peak-to-Peer-Lending (P2PL) and Securities Crowd Funding (SCF) platforms.

"Kemenkop UKM as the leading sector in the development of MSMEs in Indonesia encourages MSMEs to increase financial literacy and enter the P2PL and SCF platforms to obtain easy and adequate financing, not only through banking financing products, but also through Fintech (Financial Technology) with requirements that are not strict according to banking," he said.

He added that the Kemenkop UKM has other programs to support alternative financial solutions for MSMEs, namely S-Kopi, a digital platform that provides information related to MSME financing and investment, as well as connecting MSMEs with financial service institutions and credit assessment service providers.

With the S-Kopi, continued Arif, it is hoped that this platform can become a MSME Financing Marketplace that allows MSMEs to more easily access financing as needed.

"More than that, S-Kopi is also designed to be an e-commerce for MSMEs to promote their products and connect with MSME stores in the marketplace, such as Shopee, Tokopedia, and others," he concluded.

For your information, at the 57th APEC SMEWG which will be held next year, the Kemenkop UKM is ready to host and at the same time invite high-ranking officials of ministries/agencies in charge of SMEs from all APEC economies to attend and participate.