Switzerland Supports The Development Of Indonesian MSMEs Through The Advancement Of Financial Literacy For Village Communities

Illustration. (Photo: Doc. Antara)

JAKARTA - The Swiss government affirms its commitment to support the development of micro, small and medium enterprises (MSMEs) in Indonesia, including through the promotion of financial literacy for rural communities.

"Swiss is committed to supporting the development of SMEs in Indonesia which is in line with regional government priorities to promote a sustainable economy and financial literacy," according to the Head of Economic Cooperation and Development, Swiss Embassy in Indonesia, Violette Rappanner, quoted from Antara, Saturday, June 1.

In a joint statement by the Financial Services Authority (OJK) and the International Labor Organization (ILO) received in Jakarta, Friday, May 31, a statement from Rappanner was delivered at the launch of the Inclusion Finance Ecosystem Program (EKI) in collaboration with the organization in Kaliuda Village, East Sumba Regency, East Nusa Tenggara, last May 28.

During the launch of the program, a total of 20 selected seaweed farmers received Rp5 million each with zero percent interest without colateral. They were previously fostered through the ILO financial services access support program, Promise II Impact.

The Swiss State Secretariat for the Economy (SECO) is funding the implementation of the Promise II Impact ILO program for financial education and entrepreneurship training for local entrepreneurs in the village.

Rappanner said that access to finance and digitalization is an effective tool to improve welfare and the quality of people's lives, one of which is done by supporting the Promise II Impact program with other stakeholders.

Meanwhile, ILO's Promise II Impact Program Manager, Djauhari Sitorus, welcomed efforts to encourage financial literacy from the rural and electoral levels of Kaliuda Village as an EKI pilot village.

"The Promise II Impact program seeks to strengthen the value chain of seaweed through financial literacy training and the use of digital customers which is expected to further strengthen public access and financial literacy," he said.

At the initial stage, the ILO program provided financial education and entrepreneurship training for 200 seaweed farmers in Kaliuda Village. Based on the performance of their business development, 80 farmers passed the selection to get business assistance for eight months.

From this selection, 20 farmers were selected to have a good credit history through the Financial Information Service System (SLIK) of the OJK and received credit assistance.

The declaration of the village of EKI is the second launching for ILO fostered villages. Previously, OJK and ILO launched the implementation of the village of EKI in Umong Seuribee Village, Lhoong District, Aceh Besar District for non-oil commodities.