Sri Mulyani: Pandemic Aggravates The Condition Of MSMEs And Women, Financial Access Needs To Be Expanded

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani said that MSMEs, women, and youth are the main groups who are the most difficult to gain access to financial products and services.

According to him, the pandemic conditions are eliminating jobs and exacerbating poverty and it is also complicating efforts to overcome barriers to financial inclusion.

"So focusing on this group financially is something that is very urgent," he said in an official statement on Thursday, May 12.

According to the Minister of Finance, MSMEs play an important role in employment, investment, and economic development. According to him, MSMEs have a significant contribution to the economy by providing 97 percent of jobs, having a share of more than 60 percent of GDP, and more than 60 percent of investment.

“However, the development of MSMEs still faces many obstacles, including access to financing. We can see that the portion of credit for MSMEs in banking is still around 18 percent or far below some peer countries which reach around 30 percent to 80 percent," he said.

For this reason, the Minister of Finance assessed that the opportunity for women to enter formal financial services would not only secure family life but also be able to manage basic needs, such as health and education, and be involved in MSMEs.

“The need to build financial inclusion and an inclusive economy must include this group in order to have access to financial services. Access to transaction accounts is the first step towards greater financial inclusion. These efforts are currently underway, but we also realize that this still requires a lot of work ahead," concluded Minister of Finance Sri Mulyani.