In his speech at the opening ceremony of Pertamina SMEXPO 2024 on Tuesday, he said that his ministry is coordinating with the Ministry of Finance and the Coordinating Ministry for Economic Affairs regarding the Innovative Credit Scoring (ICS) initiative.
"Hopefully, it will offer a breath of fresh air," Abdurrahman said.
He explained that the proposal to distribute Smallholder Business Credit (KUR) as a financing scheme for MSMEs through credit scoring has been under discussion since last year.
The proposal was made because MSMEs often struggle to meet the requirements for obtaining loans, such as additional collateral and a credit history.
The credit scoring scheme offers MSMEs an alternative financing method, where credit assessments no longer rely on conventional data, like credit history, but instead use alternative metrics such as electricity usage, telecommunication activities, social health security, and e-commerce transactions.
However, the proposal had not been implemented by the end of the previous administration's term and is expected to be realized next year.
On that occasion, Abdurrahman emphasized the need for collaboration among stakeholders to support MSMEs in achieving the ambitious target of 8 percent national economic growth during President Prabowo Subianto's administration.
"My goal is also to invite large companies to contribute to advancing the MSME sector," he remarked.
According to the minister, large companies can assist and train MSMEs to produce high-quality products comparable to imported goods.
Related news: Indonesia's Human Rights Minister prioritizes structure, system reform
Related news: Minister Sulaiman outlines two strategies for food sufficiency
Translator: Shofi A, Kenzu
Editor: Anton Santoso
Copyright © ANTARA 2024
