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JAKARTA - Minister of Cooperatives and SMEs (Menkop UKM) Teten Masduki assesses that the remittance funds (money delivery), especially from Indonesian Migrant Workers (PMI), can be quite large capital if managed properly.

This was revealed when attending the signing of the cooperation or MoU between PT MNC Kapital Indonesia and Bank Kerjasama Rakyat Malaysia Berhad (Bank Rakyat).

"After PMI returns to the country, he can open a new business field or invest his funds in certain businesses. So, it is not just a remittance or remittance," said Minister Teten in a written statement, on Saturday, October 21.

Minister Teten said the cooperation between PT MNC Kapital Indonesia and Bank Rakyat Malaysia is believed to be able to provide reinforcement for PMIs who have been working in Malaysia.

"I believe this cooperation will provide convenience and security for financial transactions, foreign exchange transactions, as well as financial investment assistance to Indonesian migrant workers," he said.

He emphasized that Indonesia must take concrete action to strengthen the protection of migrant workers and also support economic growth and better international relations for Indonesia.

"Migrant workers play a role in supporting economic contributions, so PMI needs protection and welfare for workers by reducing the risk of exploitation, harassment, and human rights violations," he said.

In addition, legal protection is no less important, then social welfare with psychological support and access to the necessary social welfare services.

Teten hopes that banking company MNC Kapital can provide easy and cheap financing to MSMEs, especially PMIs who want to start running their business.

This is because based on a Bank Indonesia survey, there is still a very large financial gap of 69.5 percent, of which MSME players have not yet received access to bank credit. "The potential for credit demand reaches Rp1,605 trillion," he said.

In growing a conducive business ecosystem for MSMEs, said Teten, the government has also implemented strategic steps in the field of financing.

The government continues to grow a conducive ecosystem for MSMEs, especially in the financing sector, including financing in clusters/sok chains through cluster KUR schemes and cooperative financing through LPDB with low interest rates.

Teten invites collaboration between countries in supporting PMI and encouraging MSMEs to advance to class.

"Therefore, I invite us together to improve collaboration between countries to support Indonesian Migrant Workers and encourage Indonesian MSMEs to advance to class," he said.


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