"Our target is 10 million (MSMEs registered) with NIBs by 2024. We continue to encourage every event to have NIB (registration)," Co-operatives and Small and Medium Enterprises (SMEs) Ministry's Deputy for Micro Enterprises, Yulius, remarked here on Wednesday.
Yulius noted that having NIBs will bring several benefits to MSME actors, such as access to funding assistance, access to smallholder business credit (KUR), and other forms of facilitation.
He stated that MSME players with NIB indicate that their businesses are formal and have credibility.
"With NIB, those who used to be informal become formal. That way, they will get facilities, such as funding and KUR loans, and are more organized," he noted.
However, Yulius admitted that the ministry still faces challenges in educating about the importance of NIBs for MSMEs.
Hence, his side has intensified the promotion of NIBs to MSMEs to prove that the process of getting one is relatively easy and does not take long.
"It is hard to convince MSMEs that NIB is essential. Oftentimes, MSMEs do not understand what KUR and investment are," Yulius explained.
Furthermore, he explained that MSME products significantly contribute to boosting the economy both at the regional and national levels.
Yulius remarked that as much as 17.5 percent of Indonesia's export goods are MSME products with various commodities, such as culinary, crafts, textiles, and processed food crops and agricultural products.
"Many MSME products, such as rattan and clothing apparel, have been exported. Some 17.5 percent of Indonesia's exports come from MSMEs," he stated.
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Translator: Fathur R, Kenzu
Editor: Azis Kurmala
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