Badung, Bali (ANTARA) \u2013 Minister for Micro, Small and Medium\nEnterprises Maman Abdurrahman has stressed that financing for MSMEs\nshould be results-oriented, focusing on higher productivity and business\ngrowth rather than simply maximising the amount of credit disbursed.<\/p>\n
\u201cThe success of government credit programmes cannot be measured only\nby how much funding we manage to disburse; it must be assessed by the\nimpact that financing has on micro, small and medium-sized\nentrepreneurs,\u201d Maman said in Nusa Dua, Badung Regency, Bali, on\nThursday.<\/p>\n
This approach is important to strengthening MSMEs\u2019 contribution to\nthe national economy.<\/p>\n
Maman said MSMEs are one of Indonesia\u2019s main economic strengths,\ncontributing around 61 per cent of gross domestic product (GDP) and\nemploying approximately 95\u201397 per cent of the workforce.<\/p>\n
Given this substantial contribution, he said, financing support needs\nto help businesses grow, expand their markets and become more\ncompetitive.<\/p>\n
The government must therefore ensure that credit is suited to the\nneeds and capabilities of each business owner.<\/p>\n
However, access to formal financing continues to face several\nobstacles.<\/p>\n
Maman said some MSME owners lack adequate financial records,\nsufficient financial literacy and the business information that lenders\nneed to assess creditworthiness.<\/p>\n
Meanwhile, financing providers also face difficulties obtaining\naccurate business data and designing credit schemes suited to the\ncharacteristics of MSMEs.<\/p>\n
These conditions make mentoring an important part of financing\npolicy. Maman said business owners need to learn how to manage capital\nso that the funds they receive genuinely support their businesses\u2019\nlong-term viability.<\/p>\n
\u201cMicro, small and medium-sized businesses need guidance on how to use\nthe credit they receive,\u201d he said.<\/p>\n
To address these needs, the Ministry of MSMEs is developing an\nempowerment ecosystem through the Sapa UMKM digital platform.<\/p>\n
The platform brings together services covering business\ncapacity-building, legal compliance, certification, digitalisation,\nfinancing and market access.<\/p>\n
The government is also seeking to connect these services with\nprovincial, regency and city administrations so that support for\nbusiness owners can be delivered in a more coordinated way.<\/p>\n
Maman said financing must go hand in hand with improvements in\nbusiness management. With orderly financial records and a strong\nbusiness track record, MSMEs are expected to find it easier to earn the\ntrust of financial institutions.<\/p>\n
\u201cA good business track record will help build the confidence of\nfinancing institutions, while also expanding opportunities for micro,\nsmall and medium-sized enterprises to move up to the next level more\nquickly,\u201d he said.<\/p>\n
He added that trust is crucial to ensuring the sustainability of MSME\nfinancing. The government must ensure that its policies continue to\nuphold prudential principles and good governance, balancing the\ninterests of businesses and financial institutions.<\/p>\n
Maman said he hoped collaboration between the government and\nfinancial institutions would deliver financing with the greatest\npossible impact for MSMEs, while opening up opportunities for their\nproducts and services to reach domestic and global markets.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/maman-abdurrahman-stresses-results-oriented-financing-for-msmes-1793289273", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }