SOEs ministry supports business access for Indonesia's MSMEs

SOEs ministry supports business access for Indonesia's MSMEs

Illustration - A visitor looking over items made out of recycled newspaper during a showcase of MSME products in Bogor Agricultural Institute yard, Bogot, West Java. (ANTARA PHOTOS/Arif Firmansyah/my).

Jakarta (ANTARA) - The State-Owned Enterprises Ministry supports MSME players in five aspects, ranging from development to access and business places in public infrastructure.

"This is a form of support from state-owned enterprises for MSMEs in which we are developing five aspects. First, SOEs help develop MSMEs to upgrade, provide guidance, and also assist them if MSMEs need certification," expert staff for MSME finance and development at the State-Owned Enterprises Ministry, Loto S. Ginting, noted.

She spoke of the ministry also supporting the provision of access to financing for MSME players in ways, including through state-owned banks, non-banking state companies, guarantee firms, or via insurance companies.

On the other hand, the Ultra Micro SOE Holding was established in 2021 for addressing the financing aspect, with the objective of providing services to reach ultra-micro business actors more broadly, she said during an online seminar here on Wednesday. .

"Thereafter, we also support SOEs as offtakers and also help MSMEs to become part of the SOE supply chain, so that business relations between MSMEs and SOEs are relatively more sustainable," Ginting affirmed.

She expects the relationship would bolster efficiency and create more job opportunities.

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SOEs also support MSMEs through curation and expansion of market access, which currently includes offline market expansion, such as bazaars and pop-up stores provided by them. Another effort entails expediting the MSME online market launched in 2020, in which MSMEs have the opportunity to feature alongside state-owned enterprises in the digital platform.

"In addition, in line with the Job Creation Law, we also support the provision of access to business premises in public infrastructure," Ginting remarked.

State-Owned Enterprises Minister Erick Thohir stated that the role of MSMEs was paramount to the betterment of the Indonesian economy.

According to Thohir, the presence of state companies that were close to the people, such as BRI, helped several MSMEs in microcredit as well as streamlining the process to make it more efficient.

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