Indonesian Political, Business & Finance News

Bappenas hopes Sapa UMKM will address financing and logistics challenges

| Source: ANTARA_ID Translated from Indonesian | Social Policy
Bappenas hopes Sapa UMKM will address financing and logistics challenges
Image: ANTARA_ID

Jakarta — The Minister for National Development Planning/Head of the National Development Planning Agency (Bappenas), Rachmat Pambudy, expects the Sapa UMKM (Sistem Aplikasi Pelayanan UMKM) programme to answer the challenges faced by micro, small and medium enterprises (MSMEs), ranging from limited market access to financing, logistics and technology.

Speaking at the soft launch of the Sapa UMKM application in support of the Pro-Kesra welfare programme, he noted that cross-ministerial collaboration is required because MSMEs are spread across ministries with different commodities and responsibilities. Therefore, collaboration across ministries and agencies is needed to accelerate the process, he said in Jakarta on Friday, quoted from an official Bappenas statement.

Pambudy stated that MSME actors still face various issues in running their businesses, such as financing, halal certification, product hygiene, and technology needs. This condition not only hampers growth but can threaten business sustainability, so cross-ministry involvement is necessary to address these problems.

The Sapa UMKM is intended to be an integrated service platform for business actors, as part of the digital transformation of MSME empowerment. The platform connects MSMEs with various government programmes, services and facilities within a single channel.

In developing Sapa UMKM, the Ministry for National Development Planning/Bappenas plays a role in ensuring data integration and that MSME empowerment programmes can be connected across ministries/agencies and other parties. Through the same channel, business actors can more easily seek support, while also helping the government to identify the needs of business actors, so that programmes delivered are more targeted.

The Sapa UMKM application features a range of services accessible to MSME entrepreneurs. Among these features are Digital Bookkeeping to help MSMEs record cash flow digitally, the MSME Market to open market access for MSMEs, Legality to support MSMEs in obtaining business licences, and Financing to open access to funding and capital.

Sapa UMKM also provides features such as Certification to support MSMEs in obtaining certification/standardisation for businesses, Business Insights to help MSMEs understand trends and opportunities, the MSME Community aimed at creating collaboration opportunities, and Sapa Consult to assist MSMEs in resolving legal matters and providing business development consultation.

The launch is expected to realise a single MSME data system that is accurate, up-to-date, and integrated, so that affirmative action and MSME empowerment programmes are targeted, while supporting local economic growth.

According to the Minister for UMKM, Maman Abdurrahman, data refreshing and strengthening data governance form a very important foundation for the government in formulating evidence-based policies. The government’s data on tens of millions of MSMEs has so far been static and not fully able to reflect the real needs of entrepreneurs on the ground. Therefore, the government aims to present a more dynamic data system so that every policy and programme can be more targeted.

“Through Sapa UMKM, we want to change the static data that has been collected into data that is dynamic and continually updated. In that way, every government decision and policy truly aligns with the needs of MSME entrepreneurs,” Maman said.

He argued that the government should be the central service hub capable of drawing entrepreneurs together and connecting them within one integrated ecosystem. Until now, the government has been too focused on visiting individual MSMEs scattered across regions and sectors, while the number of MSMEs in Indonesia reaches tens of millions of units.

“Therefore, we are changing the service approach through the development of Sapa UMKM, which will become the hub for the various needs of MSMEs,” he added.

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