As a result, they need to build an ecosystem from the financing side that is indirect in nature between those who take out loan and those who provide loan
Jakarta (ANTARA) - Developing a more advanced and sophisticated financing system remains a challenge for developing and emerging countries, including Indonesia, Finance Minister Sri Mulyani Indrawati stated during the 2022 Securitization Summit here on Wednesday.

This is because such an ecosystem, in addition to producing a financing product, has to be complemented with legal framework, regulation, and authority that can offer assurance to investors and issuers, the minister elaborated.

Moreover, most of the developing and emerging countries are still in a nascent stage in terms of forming the capital, money, and securities market, she stated.

"As a result, they need to build an ecosystem from the financing side that is indirect in nature between those who take out loan and those who provide loan," she stated.

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According to Mulyani, Indonesia is still on the path to develop the finance sector, capital market sector, and securities sector, with investment within a good market.

However, Indonesia has made efforts to create a good financing and financial ecosystem, such as through financing for the housing sector, the minister explained.

The government's efforts in financing the housing sector are made with PT Sarana Multigriya Finansial (Persero) as a Special Mission Vehicle (SMV) from the Finance Ministry.

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"SMF is the ministry's SMV that is specifically dedicated to conducting housing financing," she stated.

The ministry cooperates with PT SMF to develop the housing sector's financing through the issuance of asset-backed security (ABS) products since 2009.

During the event, the minister also affirmed that Indonesia's food resiliency has been in a safe condition in the last three years, including amid the ongoing supply limitation and soaring world food prices.

"Several countries already experience a significant rise in food prices," she remarked.

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Translator: Astrid F H, Fadhli Ruhman
Editor: Fardah Assegaf
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