Pursuing the 2035 Poverty-Free Target, IKN Partners with PNM to Empower MSMEs

JAKARTA - The Nusantara Capital Authority (OIKN) and PT Permodalan Nasional Madani (PNM) are exploring opportunities for cooperation to strengthen funding, empowerment of micro, small, and medium enterprises (MSMEs) and the development of community economy in the archipelago.

The exploration of cooperation was carried out when the Head of the IKN Authority Basuki Hadimuljono received a visit from PNM President Commissioner Dradjad Hari Wibowo and his staff at the Nusantara Central Government Core Area (KIPP), Monday, August 3.

Basuki said that the IKN Authority needed the support of the PNM in funding investments, including for the empowerment of MSMEs in the IKN.

"Welcome to the IKN Authority Office. We will convey related to investment funding, including the empowerment of MSMEs in IKN. Once again thank you, we really need this PNM intervention," said Basuki as quoted from a written statement, Tuesday, August 4.

The cooperation is directed so that local people are not only spectators, but can become prospective residents of the capital who are involved in economic activities in IKN.

Dradjad said that PNM has a role in financing and supporting micro and ultra micro businesses through a number of programs, including ULaMM and Mekaar.

According to him, the opportunity for cooperation with the IKN Authority is wide open, especially to support the target of poverty reduction and strengthening the family economy in the area around IKN.

"Indeed, when communicating with Mr. Bas, we conveyed that we would inform about IKN. We were amazed to see the development of IKN. One interesting thing, there is a target for poverty-free 2035, of course, there are many things we can do from PNM, including through cooperation efforts, for example by involving Himbara," said Dradjad.

Currently, there are 4,767 MSMEs in the IKN delineation area which are spread across seven sub-districts. The seven sub-districts are Sepaku, Muara Jawa, Loa Janan, Loa Kulu, Samboja, West Samboja and Sanga-Sanga.

These data are one of the important bases for mapping the needs for assistance, access to financing, and strengthening the business capacity of the community in the IKN area.

He explained that PNM has ULaMM for microfinance and Mekaar which focuses on financing and empowerment to build a prosperous family economy, especially women entrepreneurs of ultra micro.

The Mekaar program started in December 2015 and has reached millions of customers through a group-based financing and mentoring model without collateral.

"PNM has ULaMM for microfinance and Mekaar to build a prosperous family economy, especially for mothers, since December 2015. Currently, 23 million customers have been trained through Mekaar," said Dradjad.

According to Dradjad, the mentoring approach is one of the things that distinguishes PNM from banking. The funding obtained, including from banks, is redistributed to business actors.

Through this exploration of cooperation, the IKN Authority hopes that micro-financing support, business assistance and collaboration can strengthen the ecosystem for empowering people in the archipelago.

MSMEs in the IKN area are also expected to be more ready to enter the local supply chain and the capital's economic activities.