Wamen Helvi: Strengthening MSME Key Capital Upgrades

Deputy Minister of Micro, Small and Medium Enterprises (MSMEs) Helvi Moraza. (Photo: ANTARA)

JAKARTA - Deputy Minister of Micro, Small and Medium Enterprises (MSMEs) Helvi Moraza emphasized that strengthening capital is the main foundation for growth and increasing the competitiveness of MSME actors in Indonesia in order to be able to advance to class.

"Every disbursed financing scheme not only encourages business growth, but also has an impact on job creation, poverty reduction, and improving welfare," said Helvi as quoted by ANTARA, Tuesday, November 4.

Helvi said, one of the main obstacles faced by MSMEs in accessing banking financing is the limited collateral.

He said that around 59.6 percent of MSME credit applications were rejected because they did not have adequate guarantees.

Through the Lokamodal program, said Helvi, the government facilitates MSME actors, especially micro-scales, to certify land assets in order to obtain a Land Rights Certificate (SHAT) which can be used as official collateral.

With SHAT, it is hoped that business actors will have a greater opportunity to get financing and develop their business.

In addition, Lokamodal is also a forum for providing alternative non-KUR financing (People's Business Credit), such as sharia financing, invoice collateral, and the use of intellectual property.

"This means that MSMEs now not only depend on KUR, but have more innovative financing options," said Helvi.

However, he reminded that strengthening capital must be accompanied by a sustainable strategy.

According to him, MSMEs need to strengthen the domestic market, dare to penetrate the export market, and actively support national strategic programs.

He also highlighted the rise of foreign products in the domestic market. For this reason, the government continues to encourage an increase in the portion of local products in local markets, modern shops, and government spending.

Meanwhile, Pasuruan Regent Rusdi Sutejo reminded the importance of understanding MSMEs about differences between capital loans and grants.

"Modal assistance is not a grant. This means that beneficiaries are required to return it according to the provisions and not use it for consumptive purposes," he said.

Dalam kesempatan yang sama, Deputi Bidang Usaha Mikro Riza Adha Damanik menambahkan hingga 3 November 2025, penyaluran Kredit Usaha Rakyat (KUR) telah mencapai Rp37,5 triliun kepada 713 ribu pelaku UMKM.

Dari jumlah tersebut, sebanyak 23 ribu UMKM di Kabupaten dan Kota Pasuruan tercatat telah menerima KUR dengan total pembiayaan mencapai Rp1,2 triliun.

“Memang cukup banyak. Namun belum semua UMKM mendapatkan akses pembiayaan. Maka dari itu, Lokamodal hadir dengan skema pembiayaan di luar KUR agar UMKM bisa mendapatkan akses yang lebih mudah dan terjangkau,” kata Riza.

On the same occasion, Deputy for Micro Business, Riza Adha Damanik, added that until November 3, 2025, the distribution of People's Business Credit (KUR) had reached IDR 37.5 trillion to 713 thousand MSME actors.

Of this number, as many as 23 thousand MSMEs in Pasuruan Regency and City have received KUR with total financing reaching IDR 1.2 trillion.

"Indeed, quite a lot. However, not all MSMEs have access to financing. Therefore, Lokomodal comes with a financing scheme outside KUR so that MSMEs can get easier and more affordable access," said Riza.