We are responding to the (income inequality) either through financing products or in terms of education, training, or assistance, including the development of partnership patterns for MSMEs
Jakarta (ANTARA) - Bank Syariah Indonesia (BSI), a state-owned Islamic bank in Indonesia, has said it is committed to addressing the issue of income inequality between micro, small, and medium enterprises (MSMEs) and large businesses.

"We are responding to the (income inequality) either through financing products or in terms of education, training, or assistance, including the development of partnership patterns for MSMEs," BSI Retail Banking Director Kokok Alun Akbar said here on Friday.

According to him, average MSME players earn an income of Rp58 million (US$4,121) per year. On the other hand, the income of large businesses can reach Rp1.4 billion (almost US$100 thousand) per year, he noted.

MSMEs are one of the important pillars of the Indonesian economy given their large number--they make up around 64.5 million or 99 percent of the total business players in the country, he pointed out.

"If we look at the contribution of MSMEs to the Indonesian economy, the contribution of MSMEs to the GDP (gross domestic product) is 60 percent," he added.

Therefore, he urged all stakeholders, including BSI, to push for better incomes for MSMEs. The request is based on the fact that MSME players are still facing several problems related to licensing, product innovation, distribution networks, and difficulties in accessing capital and financing, Akbar said.

Apart from financing and education, BSI has also advised and encouraged MSMEs to develop partnerships both with fellow MSME players and with large business actors who will become users of their products, he informed.

In this way, businesses can gain the trust of banks, including BSI, to obtain financing, he said.

"By building a partnership pattern in which MSME products are offtaken by big business actors, then there will also be assistance and training, we also dare to enter into financing," Akbar added.

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Translator: Sanya D S, Mecca Yumna
Editor: Sri Haryati
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