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Cooperatives and SMEs Ministry urges banks to follow BNI’s aggressive MSME push
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BNI Micro, Small and Medium Enterprise (MSME) business director Muhammad Iqbal (second left) and Cooperatives and SMEs Minister Teten Masduki (second right) shake hands as BNI is awarded the MSME Empowerment Program as part of the Merdeka Awards 2022, at the Paviliun Smesco in Jakarta on Thursday (6/23). BNI is proactive in its MSME development programs with the hope of nurturing competitive, champion MSMEs. (Photo: BNI)
A
n economic recovery driven by the micro, small and medium enterprises (MSME) segment is an effective strategy to navigate the pressures brought on by the pandemic. It requires innovative and inclusive steps from the banking industry as intermediaries.
As an agent of development, PT Bank Negara Indonesia (Persero) Tbk. is proactive in promoting various empowerment programs. The bank also disburses credit for MSMEs, the backbone of Indonesia’s economy.
For the performance of its Xpora program and the BNI MOVE application, BNI won the MSME Empowerment Program at the Merdeka Award 2022 organized by Kapanlagi Youniverse (KLY). The award was presented by Cooperatives and SMEs Minister Teten Masuki to BNI’s MSME business director Muhammad Iqbal at the Paviliun Smesco building in Jakarta on Thursday (6/23).
Teten expressed his appreciation for BNI’s developmental programs for the MSME segment. He hoped that the banking industry would follow BNI’s lead in siding with MSMEs, promoting their competitiveness and economic stability.
“Congratulations, ladies and gentlemen who have been graced with the award. We hope that this will drive more innovation to grow an MSME-based economy. I know BNI is committed to disbursing financing in productive sectors. The banking industry needs to follow BNI’s lead,” Teten stated.
Teten reminded banks to continue innovating and staying flexible in understanding the needs in MSME financing. Many high-quality MSMEs, he added, lacked collateral and they often fell victim to loan sharks and scamming fintech.
“Don’t use asset-related collateral approaches as they don’t have assets. Leverage digital platforms such as fintech for micro-sized enterprises. State-owned and private banks need to continue innovating as MSMEs grow their capacities,” he added.
In response, Iqbal explained that empowering MSME was a journey that required constant and sustainable effort. Developed countries such as Germany had embarked on the journey together with MSME players, thus demonstrating a stable and independent economy.
“Thank you to Merdeka.com. And we also thank the Cooperatives and SMEs Ministry for their guidance. This is our momentum and the drive we need to ensure that MSMEs will recover and thrive as one of our economy’s pillars,” said Iqbal.
Iqbal continued that with the mandate as an Indonesian global bank, BNI was resuming its developmental programs to help the MSME segment penetrate the export market. Capacity and capability-building programs for MSMEs by BNI are expected to nurture competitive, champion MSMEs in the global market.
BNI and the Indonesian Export Financing Agency (LPEI) have organized a coaching program for new MSME exporters to increase their potential while answering the challenges they face. Furthermore, BNI is also initiating other programs together with related ministries as part of the BNI Xpora that integrates the export and diaspora ecosystem.
“We hope that more MSME owners can run export businesses effectively while making improvements in management, production, promotions and marketing. Hopefully this will increase the export contributions of MSMEs from the current 14 to 17 percent in 2024," he said.
