54 Percent Of Women Owners Of SMEs In Indonesia Have Increased In Revenue Since Receiving Digital Payments

Photo: Special

JAKARTA - Visa, a global leader in digital payments, conducted a survey of small and medium enterprises (SMEs) in Indonesia. The findings show that 54 percent of SMEs led by women and 48 percent of micro-enterprises experience revenue growth with digital payment adoption.

Given the number of women who reach more than half of Asia's population and the important role played by SMEs in the economy, maximizing women's economic potential can add 89 billion US dollars per year to the Asian Pacific economy, including in Indonesia.

MSMEs are very important for economic growth in Indonesia which has more than 64 million MSMEs. The Ministry of Finance (Kemenkeu) highlighted the challenges that Indonesian MSMEs are facing, including obstacles to upgrading, limited access to digitalization, difficulty accessing global markets, and lack of financial services.

Despite these obstacles, MSMEs remain very important because they absorb 97 percent of the workforce, contribute 57 percent to Gross Domestic Production (GDP), and contribute 15 percent to national exports. This proves that MSMEs have a significant impact on the economy.

Visa studies found that managing the business was easier for 83 percent of SMEs surveyed in Indonesia. Digital wallets dominate as the main digital payment provider for SMEs, especially those led by women (82 percent) surveyed in Indonesia.

SMEs that have started accepting digital payments in the form of cards have increased the most significant turnover (74 percent). Digital payments allow instant transfers and non-cash transactions to improve the transaction experience. Visa supports SMEs in Indonesia by offering broad acceptance and strong protection for merchants and customers, as well as protecting them from fraudulent attempts.

Rina Isnahyuni, owner of the Balerina Fashion Makloon Premium, commented that her business has grown since she activated a choice of digital payment methods for customers.

"I am very happy with the convenience, speed, and ability to easily track payment records. This method also provides a convenient choice of non-cash payments for my customers. I hope to develop my business abroad. For that, allowing cross-border payments will greatly help me develop my customer base to outside Indonesia," he explained.

Riko Abdurrahman, President Director of Visa Indonesia, said that small and medium enterprises are the driving force behind economic growth in Indonesia. Visa is proud to be able to contribute to their growth by providing safe and comfortable digital payment solutions.

"The Visa is committed to continuing to support financial inclusion and digitalization goals of the Indonesian government, including empowering SMEs that are economic pillars, by introducing innovative financial and payment solutions so that they can build foundations to develop their businesses," he explained.

In 2023, Visa launched the UKM Accelerator Program in Indonesia to support SMEs and partners through competitive prices, faster acceptance processes, and comprehensive support for entering the market. The expanded SMB Accelerator initiative will also focus on broader partnerships with ecosystem participants to serve smaller sellers and accelerate the application of solutions for SMEs.

In Indonesia, Visa has been running an annual financial literacy program called Mother Sharing Wise since 2017 with one goal: empowering female entrepreneurs to gain better financial management skills and developing their business. Until now, the Mother's Sharing Wise program has had a positive impact on more than 1,400 women through workshop and mentoring schemes.

In the 2021-2023 range, in collaboration with Maxi Consulting, this program has succeeded in having a positive impact on more than 1,000 MSMEs in Central Java, Yogyakarta, Bali, and West Java, with support from the relevant local governments, Bank Indonesia, the Financial Services Authority, and related ministries such as the Ministry of Tourism and Creative Economy, as well as the Ministry of Cooperatives and SMEs.

The Visa Foundation has also launched $100 million in funding for five years to accelerate access for underrepresented and led SMEs by women in APEC countries, including Indonesia. Of the nearly 67 million SMEs reached by Visa globally, about 29.6 million came from the APEC economy, with 10.9 million of them being SMEs led by women.