BI Increases Export-Oriented MSME Access To Financing

Illustration (Photo: Doc. Antara)

JAKARTA - Bank Indonesia (BI) seeks to increase access to export-oriented MSMEs to financing so as to expand the contribution of MSMEs to exports.

"Our program is to increase the contribution of MSMEs to exports, we have an export-oriented MSME development program to access financing," said Executive Director of the Department of MSME Development and Consumer Protection of Bank Indonesia Yunita Sari as quoted by Antara, Tuesday, August 29.

Yunita said, currently there are more than 65 million MSMEs, but the contribution of MSMEs to exports is only 14.7 percent, and the growth is also very limited.

Therefore, there needs to be a joint strategy and effort as well as the synergy of all stakeholders to spur MSMEs into the export market.

For this reason, BI encourages banks to allocate credit or financing to MSMEs. BI also has a multichannel financing program (Mcf), which is financing through a business value chain that is connected to corporations or aggregators.

In addition, BI provides support for MSMEs both on the supply and demand sides.

On the supply side, BI provides incentives in the form of easing the obligation to fulfill the rupiah Minimum Laboratory (GWM) which must be fulfilled on an average of up to one percent for banks that provide funds for certain and inclusive economic activities.

On the demand side, BI encourages access to financing, business matching, development of subsistent groups, and development of green MSMEs.

"We provide capacity building and access to markets and access to financing," he said.

The development of export-oriented MSMEs can be carried out by increasing the capacity of MSMEs to enter the global market by fulfilling the qualification of the buyer's request or export destination countries, as well as ensuring the quantity, quality, capacity, sustainability, packaging, standardization and certification of MSME production for the international market.

MSME understanding of management, procedures, business licenses and export destination country requirements also needs to be improved.

In addition, the digital capacity of MSMEs also needs to be optimized to support business activities, and optimize digital platforms as one of the MSME export channels.