Jakarta: President Joko Widodo (Jokowi) has said that micro, small, and medium enterprises (MSMEs) must have greater access to business capital funding.
"To achieve that, we need a strategy that must be carried out with a breakthrough from now on. With serious and sustainable actions, there should be no more stories about MSMEs having difficulties accessing credit or funding," Widodo said during the 2022 Financial Services Industry Annual Meeting and the online launch of the Green Taxonomy on Thursday.
By 2024, MSMEs must be able to get 30 percent of credit from the banking industry, he said. Right now, their credit portion is around 20 percent, he noted.
"We know that 99.9 percent of our business actors are MSMEs. Although the amount is large until now, their credit portion in the bank has not changed. It is still in the range of 20 percent," he said.
Efforts to realize the target of increasing the portion of MSME credit to 30 percent cannot rely solely on natural growth, but will require serious, consistent, and sustainable policy breakthroughs from regulators and also financial services industry players, the President added.
With easy access to capital, it is hoped that MSME actors and the younger generation can expand their business scope, Widodo said.
"MSMEs can become an important component to recover the economy and play a role in overcoming bottleneck supply chain problems due to high demand that have not been able to fulfill," he added.
The President emphasized that MSMEs could become key players in economic recovery from the COVID-19 pandemic.
"MSME transformation during the pandemic has become an important asset to elevate their business and become the driving force for our economic recovery," Widodo remarked.
The 2022 Financial Services Industry Annual Meeting and the launch of the Green Taxonomy took place in a hybrid format, with the President delivering his speech from the Bogor Presidential Palace, West Java.
Chairman of the Board of Commissioners of the Financial Services Authority (OJK), Wimboh Santoso, ministers from the Indonesia Maju cabinet, Governor of Bank Indonesia, Perry Warjiyo, figures from the financial services industry, and other relevant officials also attended the event.