The government has allocated a budget of US$6.7 billion (IDR95.13 trillion) for the MSME sector through the National Economic Recovery (“PEN”) program this year. Coordinating Minister for Economic Affairs, Airlangga Hartarto, said the current realisation is 64.8%, reaching 32.72
More than 50% of Indonesia’s micro and small businesses are owned by women. However, many of them were forced to close their businesses due to lack of capital during the Covid-19 pandemic. Minister of Cooperatives and Small and Medium Enterprises
The Financial Services Authority (OJK) reported that the realization of bank credit in July slowed down, despite its 0.5% year-on-year growth. OJK chairman, Wimboh Santoso, mentioned that the private commercial banks’ lending is contracting at 2.62% year-on-year, and 4.5% year-to-date.
Since the pandemic, 15.3 million MSMEs have entered the digital ecosystem. However, the technology companies face several key challenges in targeting the MSME sector, such as loose supply chains for the FMCG sector, MSME credit gap, and storage capability. Nevertheless,
President Joko Widodo urges banks to allocate 30% of total lending to the MSME sector by 2024. Currently, average loan disbursements to MSMEs is 18% on an annual basis. The targeted 30% figure is aggregated at a national level, and
Bank Indonesia (BI) issues new banking rules to make it easier for banks to meet mandatory MSME or business lending targets. Under this new regulation, banks are required to allocate a minimum 20% of total lending to the MSME sector
President Joko Widodo’s three-part approach includes industrial downstreaming, digitising MSMEs, and the green economy. Jokowi said that some of the downstream results are already observable. Indonesia’s steel exports have reached US$ 10.5 billion during the first half of 2021. Other
Jokowi shared that 14 million MSMEs have digitized parts of their businesses during the pandemic. Last year alone, Indonesia’s e-commerce transaction volumes reached US$ 17.5 billion (IDR 253 trillion). E-commerce transactions are estimated to reach US$ 22.9 billion (IDR 331
The Government of Indonesia offers a streamlined process for MSMEs to obtain business permits, using the online single submission system (“OSS”). MSMEs can now obtain a business identification number (“NIB”) in as fast as 30 minutes. Investment Minister, Bahlil Lahadalia,
As small businesses (“MSMEs”) are increasingly turning to digital solutions to operate, fintechs are working hard to effectively reach the MSME segment. Latest national data reveals that 11.7 million MSMEs have entered the digital ecosystem, as of early 2021. The
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