"The government and the central bank emphasize that the development of MSMEs is not only about financial inclusion but also economic inclusion," he stated in a virtual speech during the Governor Talk session at the 2020 International Monetary Fund (IMF) Annual Meeting here on Wednesday.
BI supports the development of MSMEs by launching the Blueprint for the Indonesian Payment System 2025 in May 2019, the governor of Indonesia's central bank, stated.
The objective is integrating digital economy and finance, especially for micro and small businesses having no access to banking.
Warjiyo was optimistic that MSMEs would also be connected with online trading, financial technology (fintech), and payment system infrastructure.
Another goal is to encourage the development of open banking, with 10-15 banks currently offering services, such as fintech, through facilitating application.
"We also support fintech, develop startups, and connect this fintech to open banking. We are building the Indonesian version of the QRIS global standard," he revealed.
The Quick Responds Indonesian Standard (QRIS) has, until now, been used by nearly five million SME-scale traders and connected to fintech and open banking.
BI is also in the process of developing a 24-hour Fast Payment facility for seven days, with the planned launch in 2021, to facilitate the retail payment process.
"We are highly enthusiastic about using digital payment systems to digitize the economy and finance and digitize MSMEs to support open banking and fintech startups. This will also support Indonesia's future growth based on MSMEs," he noted.
Until now, the number of MSMEs in Indonesia is estimated at around 64 million, of which 13 percent, or some eight million, have conducted digital transformation.
"In Indonesia, 90 percent of the businesses are MSMEs and absorb some 80 percent of the workforce," he added. Related news: Government delineates five key agendas to drive digital transformation
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Translator: Dewa KSW, Fardah
Editor: Suharto
Copyright © ANTARA 2020
