The Ministry Of MSMEs Is In Collaboration With CBI To Strengthen Financial Information Services

JAKARTA - The Ministry of Micro, Small and Medium Enterprises (MSMEs) officially cooperates with the Credit Bureau of Indonesia (CBI) through the signing of a cooperation agreement aimed at improving business and financial management services, especially for MSME players in Indonesia.

Minister of Micro, Small and Medium Enterprises (MSMEs) Maman Abdurrahman said CBI is an institution that provides financial information services that has an important role in supporting the growth of national MSMEs.

According to him, until now there are still many MSME players who do not have an adequate understanding of the importance of financial management, especially in terms of a neat and accurate preparation of financial reports.

He added that this lack of awareness was a big obstacle when MSMEs wanted to apply for financing to banks and other financial institutions to develop their business.

"There are still many MSMEs in Indonesia that they are still weak and lacking in financial awareness, financial reports which are one of the impacts of weak awareness of understanding making financial reports. Finally, some of our small and medium enterprises are on, and micro and above, yes, this is not for ultra micro, yes, when they want access to financing in order to increase their business improvement, they are often hampered," he said, Thursday, June 26.

Maman emphasized that the collaboration with CBI aims to provide easy access to financing for MSMEs by providing accurate, reliable, and easily accessible financial information.

He hopes that through this support MSMEs can improve business eligibility in accessing funding sources.

Furthermore, he said CBI could also assist MSMEs who act as suppliers to other companies, by providing information about the financial condition of these business partners.

According to him, this information is very important to assess partner financial capabilities, so that MSMEs are not harmed by late payments or other financial risks that can interfere with business continuity.

"So that in the future CBI can provide information about the financial strength of these partners, for example, for example, there are many examples of MSME-A cases where they supply goods to company B but the problem of paying back eventually causes our MSMEs to be disrupted financially because the payments from distributors where they supply are problematic," he said.

He added that the essence of business growth is the ability to prepare good financial reports as a basis for upgrading and developing businesses.

According to him, financial reports are the main benchmark in assessing the feasibility of a business to obtain financing from banks and other financial institutions.

"We want to encourage that, we want our micro-entrepreneurs, our small entrepreneurs, our medium-entrepreneurs, to start building the strength of their business institutions properly and appropriately so that they can more easily grow up in the future to access access the power to access access access to financing and finance," he said.

In line with this, President Director of the Credit Bureau Indonesia, Anton K. Adiwibowo, stated that basically his party is an institution that manages credit information that plays a role in helping various parties who need financial information to manage and mitigate risks.

Anton emphasized that MSMEs actually have a very important need for accurate information, especially to identify potential business partners.

"This is also very helpful for MSME entrepreneurs to build risk profiles so that when MSME entrepreneurs need funding from banks or from financial services institutions the risk profile has been built properly," he explained.

He added that CBI also helps MSMEs in building solid risk profiles because this is very much needed when MSMEs apply for financing to banks or other financial services institutions because they are the basis for assessing the credibility and feasibility of an MSME entrepreneur.

According to him, with complete and reliable data, banks or other financial service institutions can assess whether the MSME actors have a good track record and are worthy of being given financing.

"Well, this is what banks need to see when financing whether the MSME entrepreneur is good or cannot be trusted or not, this is actually for information on the development of the risk profile," he said.