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Finastra CEO praises Indonesian MSME management
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(Left to right) Finastra Group Holding Ltd. CEO Simon Paris, Deputy SOEs Minister II Kartika Wirjoatmodjo, Latin America Initiative Center for Global Development director Liliana Rojas-Suarez and Harvard Kennedy School professor Jay K. Rosegard attend the SOE International Conference, with the hashtags #BUMNuntukG20 and #SOEInternationalConference, at the Bali Nusa Dua Conference Center in Bali on Monday. (Courtesy of BUMN)
T
he government's strategy to develop the micro, small and medium enterprise (MSME) segment by prioritizing subsidies as the basis for banking to disburse trade finance has been deemed appropriate by industry experts and players.
Finastra Group Holding Ltd. CEO Simon Paris is of the opinion that the Indonesian economy has high expectations for the MSME segment's performance growth. Moreover, MSMEs contribute more than 65 percent of the national gross domestic product (GDP).
According to Simon, the government's decision to prioritize subsidies through the micro credit program (KUR), credit guarantees and other schemes are considered very appropriate, especially in encouraging financial industry players to disburse financing.
“If the government guarantees all transactions from MSME actors, more banks will disburse trade finance, especially now that many marketplaces have begun to accommodate their trade," he said at the SOE International Conference, which bore the hashtags #BUMNuntukG20 and #SOEInternationalConference, at the Bali Nusa Dua Conference Center in Bali on Monday.
Simon believed the step to increase access by utilizing digital banking solutions was also appropriate, as it was also followed by a variety of programs that had reached vulnerable groups such as women and communities in remote areas.
"The government also continues to encourage all economic actors to become companions for MSMEs so as to support their development and provide added value," he said.
On a separate occasion, BNI corporate secretary Okki Rushartomo noted that as a state-owned bank, BNI made the expansion of inclusive financing, or MSME credit, one of its priorities, as the bank already had a digital MSME development ecosystem that was capable of helping MSMEs go global.
BNI's various financial solutions include cash management, mobile banking, EDC activation and QRIS, as well as support for capacity building and market opening through BNI Xpora.
BNI has also equipped itself with various financial solutions to support MSME operations. Various development and assistance programs targeted at MSMEs will continue to be implemented.
"In line with the spirit of G20, namely ‘recover stronger and recover together’, BNI continues to expand market access by collaborating with numerous MSME associations, e-commerce firms and diaspora communities abroad," he concluded.
