OJK Encourages MSMEs To Become The Main Pillar Of The National Economy

Chairman of the OJK Board of Commissioners Mahendra Siregar. (doc OJK)

JAKARTA - The Financial Services Authority (OJK) continues to support the growth of MSMEs as well as the development of Indonesia's tourism sector and creative economy in order to continue to contribute and become the main pillar of the national economy.

This was stated by the Chairman of the OJK Board of Commissioners Mahendra Siregar in the Peak Activity of Semarak Harvesting the Proud National Movement Made in Indonesia and Proud to Travel in Indonesia (Gernas BBI-BBWI).

Chairman of the OJK Board of Commissioners Mahendra Siregar said that Gernas BBI/BBWI is one of the government's real, sustainable and directed strategic efforts in providing support to MSMEs and the Indonesian tourism sector so that it can continue to develop and become the main pillar of the national economy.

"Gernas BBI/BBWI is also a leading program carried out simultaneously by the South Sumatra Provincial TPAKD and all regencies/cities in South Sumatra Province," he said in his statement Sunday, May 26.

Furthermore, Mahendra said that as of December 2023 in South Sumatra there were more than 2.5 million MSMEs that contributed 60 percent of South Sumatra's GDP and absorbed 70 percent of the workforce.

According to Mahendra, good infrastructure and connectivity in South Sumatra will be a strong potential for better tourism sector development.

Therefore, Mahendra said that it is necessary to rely on more driving motors in the country, which means the growth of economic centers in all regions and provinces in Indonesia.

"For this reason, our efforts to maintain public consumption growth by increasing investment that supports the service sector, including those that are very important for tourism and the creative economy," said Mahendra.

On this occasion, Mahendra also expressed his appreciation for the commitment of the Central Government and Regional Government as well as Ministries and Institutions in synergy under the coordination of the Ministry of Maritime Affairs and Investment to continue developing MSMEs and Regional Tourism.

Furthermore, Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan expressed his appreciation to the OJK as a campaign manager as well as the top brands and acting Governors of South Sumatra for the implementation of the Gernas BBI and BBWI series in South Sumatra well.

Meanwhile, Luhut advised OJK to continue to assist BBI and BBWI collaboration in all regions and help improve the ability of MSMEs to gain access to financing.

Furthermore, advanced MSME training has been carried out with 1,373 MSME participants from 17 districts/cities in South Sumatra.

In addition, participants take part in intensive training and assistance as well as increase their capacity and knowledge to compete in the global market. In assistance, curation is carried out to the top 5 MSMEs for the Province of South Sumatra which can then take part in the 2024 BBI/BBWI Award at the national level representing the Province of South Sumatra.

The results of monitoring MSME training as a series of Gernas BBI/BBWI activities, recorded that the top 15 MSMEs recorded an increase in turnover of 69.51 percent. Other achievements are shown to be nationally recorded that there are more than 150,000 MSMEs that have onboarded MSMEs to e-commerce platforms.

In addition, support from the Financial Services Institution is also realized through lending and financing to MSMEs. Overall in South Sumatra Province, the proportion of MSME lending to total lending by banks in South Sumatra was recorded at 23.95 percent or Rp39.75 trillion.

This ratio shows that the banking sector continues to strive to support the distribution of credit/financing to MSMEs in meeting the Macroprudential Inclusive Financing Ratio (RPIM) target of 30 percent in 2024.

Another achievement score is shown through the amount of domestic product expenditure (PDN). In the first quarter of 2024, the realization of budgets and operational expenditures in South Sumatra Province has reached Rp3.61 trillion, where shares for goods and services expenditures amounted to Rp1.18 trillion or 30 percent, with the use of PDN from goods and services expenditures amounting to Rp584.34 billion or 49.52 percent of the General Procurement Plan (RUP) (the 4th highest nationally).

Mahendra said the OJK would continue to encourage increased financial access for MSME players through policies in terms of demand and supply.

Meanwhile, on the demand side, MSME players are directed to increase their capabilities through a series of literacy activities and financial inclusion to be included in the category of bankable society.

Meanwhile, in terms of supply, OJK through the Regional Financial Access Acceleration Team (TPAKD) provides full support so that financial institutions, both banking and non-banking, synergize with stakeholders in the regions in providing easy, affordable, and financial access to their needs.

Mahendra said that the OJK will continue to provide ongoing support to MSMEs and the tourism sector in Indonesia through various initiatives, including:

Facilitation of Access to OJK Financing facilitates access to financing for MSMEs through various programs, including credit/financing, business matching, and financial literacy training.

The digitization of MSMEs encourages MSMEs to adopt digital technology to expand their reach and improve their business operations.

OJK's Sustainable Finance encourages financial practice towards a more sustainable and inclusive direction through the issuance of Taxonomy for Indonesia's Sustainable Finance (TKBI) to support environmental and social businesses.