Speaking at the opening ceremony of Pertamina SMEXPO 2024 on Tuesday (22/10/24), Indonesia’s new Minister of Micro, Small, and Medium Enterprises (MSMEs), Maman Abdurrahman, stated that he would continue improving MSMEs’ access to financing and coordinate with the Ministry of Finance and the Coordinating Ministry for Economic Affairs regarding the Innovative Credit Scoring (ICS) initiative, according to reporting from Antara News.
“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, says Antara News, adding that 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.
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, says Antara News.
“My goal is also to invite large companies to contribute to advancing the MSME sector,” he said.
According to the minister, large companies can assist and train MSMEs to produce high-quality products comparable to imported goods.
Source: Antara News
Stock image by Gerd Altmann from Pixabay
