Sri Mulyani Encourages Increased MSME Financing

Minister of Finance, Sri Mulyani Indrawati. (Photo: Doc. Antara)

Minister of Finance Sri Mulyani Indrawati said that only 20 percent of Micro, Small and Medium Enterprises (MSMEs) can access financing through banks and this figure is much lower when compared to other countries.

"MSMEs in Indonesia are relatively stable and bankable, but in the portion of bank credit financing is only around 20 percent and Indonesia is low compared to many other countries", said Sri Mulyani on the 2024 BRI Microfinance agenda in Jakarta, Thursday, March 7, 2024.

Therefore, Sri Mulyani hopes that banks can help and make it easier for MSME players to access financing to make it easier. So this is one of the challenges for all stakeholders to encourage and increase financing from MSMEs so that they can advance to class.

"This is one of the challenges why Indonesia needs to increase financing from MSMEs in bank credit, to increase MSMEs in order to get affordability and access to MSMEs to advance to class is a necessity," he explained.

Sri Mulyani said that the Ministry of Finance itself already has state tax instruments that favor or affirm MSMEs by determining that the MSME tax rate is 0.5 percent for taxpayers with gross circulation (omzet) not exceeding Rp4.8 billion a year.

"That includes a very high threshold compared to other countries. We also provide support through state spending and fiscal tools through other Ministries/Institutions, including the Ministry of Cooperatives and MSMEs, as well as encouraging from the local government side, namely through BUMDes and other programs," he said.