As a financial institution that is the pioneer of the microfinance program in Indonesia, BRI continues to strive to always maintain and develop the conditions of the microfinance industry. Therefore, the BRI Research Institute is fully supported by BRI to hold the  2021 BRI Microfinance Outlook in Jakarta on Wednesday. Themed, Adapting Through Innovation and Synergy, the event was attended by Cooperatives and Small and Medium Enterprises (SME) Minister Teten Masduki, Financial Services Authority (OJK) board of commissioners chairman Wimboh Santoso, State-Owned Enterprises (SOE) Deputy Ministers Pahala N. Mansury and Kartika Wirjoatmodjo, as well as BRI president director Sunarso.

The BRI Microfinance Outlook is part of BRI's commitment to supporting the growth of micro, small and medium enterprises (MSME) amid economic uncertainty. BRI's support for MSMEs will not decrease, especially as it is becoming increasingly clear that the role of MSMEs is significant to the national economy.

Data from the Cooperatives and SME Ministry shows Indonesia was home to around 62 million micro-entrepreneurs in 2018. The country also has some 757,000 small businesses, 58,600 medium enterprises and 5,500 corporations. The contribution of MSMEs to Indonesia's gross domestic product (GDP) has exceeded 62 percent, equivalent to Rp 8 quadrillion (US$550.59 billion).

In his speech at the event, Sunarso expressed his hope that the 2021 BRI Microfinance Outlook can make a real contribution to the development of the microfinance sector this year.

"With close relationships and cooperation with stakeholders, both regional, national and global, BRI hopes to advance the development of microfinance and empower MSMEs in Indonesia in a synergistic ecosystem. We really need this extraordinary support and collaboration to be able to enrich our insights to continue to develop MSMEs so that we don't get trapped if micro remains micro […] and can develop and get new sources of growth from the levels below,” he said.

On the same occasion, Pahala revealed that the improvements in Indonesia's economic condition will continue in the second quarter of 2021. This can be seen from the increasing demand for household electricity supply across the country. This must be maintained and utilized as much as possible, he said.

Pahala added that in 2021, the SOE Ministry will focus on providing support for infrastructure needs, funding and market access for the development and recovery of MSMEs. This support is provided both through policies and corporate actions, as well as integrations between existing SOEs to make them more efficient for the advancement of MSMEs.

"We are trying to build digital platforms and digital services for MSMEs. In terms of funding or financing, one of the main initiatives that we are undertaking related to the ultra-micro [UMi] businesses is how we can consolidate SOEs to support the ultra-micro ecosystem. Indeed, ultra-micro [businesses] currently still require funds […] We hope that the consolidation of SOEs can support the UMi ecosystem and we can empower and increase their capabilities and deepen their financial products; this is not just about financing but also saving, insurance and so on. In addition, later if these ultra-micro businesses want to move up to the micro level, for example, we can do this.”

Wimboh revealed that related to MSMEs, steps must be taken by all stakeholders because financing is not enough.

"They need guidance so that they can produce better and have better quality products. In addition, sales channels and a complete ecosystem are also needed," said Wimboh.

Meanwhile, Teten, who was present to give a keynote speech at the event, also revealed that the government continued to strive to develop MSMEs, including creating entrepreneurs.

"Thank you, this event is very good; BRI is indeed the champion of MSMEs because it is natural that there is a lot of praise from the international community for BRI as a big bank," Teten said.

"Our target in 2024 can be 4 percent, if it is supported by a financing ecosystem, an entrepreneurial ecosystem, and we will focus on MSMEs that accompany them, including those in incubation. I think that target can be achieved.”

The event, which was held in a hybrid webinar format, presented a total of two sessions with the subthemes of Empowering Sustainable Microfinance and Its Ecosystem, and Boosting Innovation for Synergy in Microfinance. In session one, the speakers who attended were BRI micro-businesses director Supari, Harvard Kennedy School adjunct lecturer Jay Rosengard, University of Indonesia sociologist Imam Prasojo, McKinsey and Company representative Prateek Bhargava and OJK senior executive analyst Roberto Akyuwen.

In the second session of the webinar, the speakers who attended were University of Indonesia chancellor Ari Kuncoro, Cornell University representative Iwan Jaya Azis, Kulon Progo Regent H. Sutedjo and Indonesian Fintech Lending Association secretary-general, CEO of Dompet Sunu Widyatmoko, BRI chief economist BRI Research Institute director Anton Hendranata.

Besides featuring two webinar sessions, the 2021 BRI Microfinance Outlook also presented the BRI Micro & SME Index (BMSI) Q1-2021 and launched LinkUMKM, a digital empowerment platform developed by BRI for Indonesian MSMEs, as well as the Professional Certification Institute (LSP). It is hoped that the emergence of these new products and institutions can increase the capacity of all policymakers to optimally empower MSMEs and create more level-up business actors.

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