House Forms Working Committee on MSME Financing, Focusing on Capital Access
Access to financing remains one of the obstacles for micro, small, and medium enterprises (MSMEs) and creative economy players seeking to develop their businesses. The issues include limited collateral, the loan application process, and business owners’ understanding of financial management.
Member of Commission VII of the Indonesian House of Representatives Gandung Pardiman supports the establishment of a Working Committee on MSME and Creative Economy Financing and Capital Access to address these issues. In his view, a financing mechanism more suited to the conditions of small and medium enterprises is needed.
Gandung made the remarks during a meeting in Yogyakarta on Thursday (28/8/2026). He assessed that access to capital from banks and financing institutions needs to be expanded so that MSMEs and creative economy players can increase their business capacity.
“MSMEs and the creative economy absorb the most labour, around 98 percent. But their obstacle when they want to develop their businesses is that they often hit a wall with financing or capital assistance. Hopefully the presence of this working committee will become a concrete solution with a financing scheme that is easy, low-interest, and not complicated,” Gandung said in a statement on Saturday (29/8/2026).
According to Gandung, there needs to be a push for banks, state-owned enterprises, and financial institutions to develop financing products more suited to the characteristics of MSMEs and the creative economy. Such schemes could include lighter collateral requirements and simpler application processes.
Beyond financing, strengthening the business ecosystem is also needed through revolving funds, productive grants, and market access. Such support is considered capable of helping MSME and creative economy players increase their business capacity and open up export market opportunities.
On the other hand, financial literacy is an equally important issue. Gandung believes mentoring is needed so that business owners understand financial management, bookkeeping, and the requirements needed when applying for financing.
“This is often underestimated by MSME and creative economy entrepreneurs. Awareness of financial literacy must be cultivated and is a necessity in supporting MSME and creative economy players so that they obtain financing and capital access that favours them,” said the Golkar Party legislator.
Gandung said that smooth access to financing can help MSMEs expand their businesses, create jobs, and drive regional economies. “This is a long-term investment for national economic resilience,” Gandung said.
The Working Committee on MSME and Creative Economy Financing and Capital Access at Commission VII of the House is expected to produce recommendations on policies and financing schemes for business players. The challenge is to ensure that financing access is not only formally available but also reachable by MSME players according to their capabilities and business conditions.