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Press Release

Minister Teten: Banks Must Aim for Potential MSMEs to Advance Class

Minister Teten: Banks Must Aim for Potential MSMEs to Advance Class

Jakarta, 8 February 2022 -- Various efforts and strategies were carried out to encourage Indonesian MSME products to compete and penetrate the global market. The reason is, in the midst of the Covid-19 pandemic that hit, the MSME segment has proven to be able to survive and recover faster than other sectors.

Unfortunately, despite having great potential, MSMEs usually have limitations on market access, capital, and branding. This is also one of the obstacles for SMEs to be able to penetrate the export market. In order to increase MSMEs competitiveness in the global market, PT Bank Negara Indonesia (Persero) Tbk (BBNI) has also made various efforts. This state-owned bank focuses on creating a productive ecosystem. This ecosystem is then connected to various digital platforms prepared by BNI. That way, it can create interlinks between MSME ecosystems, and be able to respond big demands, including for exports.

The Minister of Cooperatives and MSMEs, Teten Masduki, appreciated the steps taken by BNI, as the bank assigned to facilitate increased exports. He said Indonesia has many MSMEs with good products, and potential market demand, including for exports. Unfortunately, many have difficulty getting capital for business expansion or modernization of their production technology. "Banks should be targeting these potential MSMEs to be given financing, and BNI is one of those assigned to facilitate increased exports," said Teten, Tuesday (8/2/2022).

According to him, MSME products that are in great demand in the export market are furniture, home decor, culinary, natural ingredients, marine resources. According to Teten, these sectors can be further improved, so that MSMEs can move up the class and penetrate the global market. Furthermore, the Deputy for Micro Business at the Ministry of Cooperatives and SMEs, Eddy Satriya appreciated the steps taken by BNI which were in line with the government's goal of increasing MSME exports.

Moreover, MSME players need assistance and class improvement to be able to win competition in the global arena. “What is being done is very consistent, and it is very good considering that our MSMEs are very large in number. The ability of the APBN and APBD is limited, so the existence of BNI with this program is very helpful in the process of mentoring and improving the MSME class," said Eddy.  

He said BNI is also a state-owned bank that is proactive in supporting the MSME Digital Market (PaDi) program. BNI also continues to increase the procurement of goods and services from MSME actors. BNI also focuses on developing potential overseas markets with BNI Xpora.

Previously, BNI's President Director, Royke Tumilaar said that his party had prepared various banking solutions, with coaching and mentoring programs that were expected to help MSME players advance to class while being able to penetrate the export market.

For example, BNI Xpora, this program is aimed at optimizing migrant workers as well as the Indonesian diaspora, whose number reaches 8 million. In this program, BNI supports migrant workers and the diaspora to become development agents for domestic MSME players. "BNI is also actively encouraging domestic MSME players to build their capabilities and business capacity in responding to foreign demands with 7 Xpora Hubs spread across Sumatra, Java, Bali and Sulawesi," said Royke.
 

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