Minister Erick Tohir: Unacceptable The Bigger Get Bigger, Smaller Get Smaller

JAKARTA - SOE Minister Erick Thohir asked the establishment of Ultra Micro Holding to facilitate the provision of credit or financing to micro, small and medium enterprises (MSMEs) at low-interest rates.

Because, said Erick, the formation of Ultra Micro Holding is a step in favor of state-owned companies to micro-scale business actors.

Currently, the progress of the establishment of the holding is entering the final stage, namely the transfer of state shares from PT Pegadaian (Persero), PT Permodalan Nasional Madani (Persero), or PNM to PT Bank BRI (Persero) Tbk. Meanwhile, the value of the transfer of shares reached IDR 54.7 trillion.

Erick targets the formation of the Ultra Micro Holding to be completed in November 2021. According to Erick, this is in accordance with the initial agreement with the President Director of the three companies, namely PT Pegadaian (Persero), PT Permodalan Nasional Madani (Persero), or PNM to PT Bank BRI (Persero) Tbk.

"I expect a merger from BRI, Pegadaian, and also PNM, here I have a note, that I want to make sure it can happen how partiality of interest is cheaper for those below. And according to our agreement at that time, the President Director in November (2021) this has actually happened, " he said at the signing ceremony for the transfer of shares, Monday, September 13.

Erick emphasized that business integration between Pegadaian, PNM, and BRI must encourage MSME businesses. This is because, in the field, a number of micro-business actors desperately need credit facilities. In addition, it must also provide an economic balance between business actors and the surrounding community. Because, the better the performance of MSMEs due to easy access to costs, the more absorption of new workers.

"We have to make sure that in conditions of economic balance, it can't happen. The big ones get bigger, the smaller ones get smaller," he said.

Furthermore, Erick emphasized that the presence of Ultra Micro Holding will strengthen the business model of each company. According to him, BRI, Pegadaian, and PNM will complement each other in providing integrated financial services for the sustainability of ultra-micro business empowerment.

"The presence of this ultra micro holding will increase empowerment and provide more complete and cheaper financing, because that is one of the goals of the presence of Holding UMi through the synergy of the three SOEs. Through co-location BRI service networks in the future will also be equipped with counters for Pegadaian, as well as the post of account officers (AO) from PNM Mekaar. Even through various simulations, co-location is able to record efficiency because it reduces operational costs and costs of funds (cost of funds)," he said.

Based on the report of BRI President Director Sunarso, there are 13 co-location points that can be used together in the Smile program. According to him, Ultra Micro Holding will produce micro empowerment institutions including the largest ultra micro that has the most complete financial ecosystem.

Furthermore, Erick Thohir said the ultra micro-ecosystem built based on the synergy of the BRI, Pegadaian, and PNM business models would be able to provide an integrated financial service journey for business actors in this segment.

"The journey begins with the empower phase where PNM through its group lending business model provides empowerment programs to unfeasible and unbanked customers to become more independent ultra micro-entrepreneurs," he said.

Furthermore, in the integrate phase, when PNM customers have become feasible With increased business capacity, BRI and Pegadaian Ultra Micro products can be offered. The ultimate goal of the Integrated Journey in this Ultra Micro Ecosystem is the upgrade phase.

"Where UMi customers have developed into entrepreneurs with more mature business capacities and are ready to upgrade to the Micro segment," he said.