Erick Thohir Praised BRI for Strengthening the MSME Ecosystem
BRI wanted to maintain their customers' business in a sustainable way.
REPUBLIKA.CO.ID, JAKARTA -- Minister of State-Owned Enterprises (SOEs) Erick Thohir assessed that the UMKM EXPO(RT) BRILIANPRENEUR which was initiated by PT Bank Rakyat Indonesia (Persero) Tbk or BRI was able to maintain and support the strengthening of the micro, small, and medium enterprises (MSME) ecosystem.
At the opening ceremony of the UMKM EXPO(RT) BRILIANPRENEUR 2023, which is part of BRI's 128th Anniversary at the Jakarta Convention Center, December 7, 2023, Erick expressed that the empowerment of MSMEs in this case through BRI as a state-owned bank was proved of goverment presence and work to the society. "President Joko Widodo always tells us to take care of the small, take care of MSMEs. Especially at BRI to ensure that we build an ecosystem for MSMEs where there were funding, market access, and assistance. That is the key that we always maintain. Of course you can see that BRILLIANTPRENEUR is now shining even more," he said.
UMKM EXPO(RT) BRILIANPRENEUR is a BRI annual event since 2019. The program was a mean of business matching between Indonesian MSMEs and foreign consumers. This flagship program from BRI was expected to be able to develop MSMEs and increase national exports.
According to Erick, through UMKM EXPO(RT) BRILIANPRENEUR ensured that MSMEs that have export quality products can access foreign markets. This was in line with the government's aspirations to encourage MSMEs to access global markets.
"You can see that the quality of the products participating in this program is very good. I would like to thank the team of curators who really accompany and look after them, especially BRI, which continues to encourage MSMEs to become a priority rather than growth, not only for BRI but also for the national economy," he added.
The government was optimistic that the theme of this year's UMKM EXPO(RT) BRILIANPRENEUR, namely Crafting Global Connection, can be further strengthened and sustainable in empowering and developing national MSMEs.
On the same occasion, President Joko Widodo appreciated BRI's performance in strengthening the MSME ecosystem, one of which is through the UMKM EXPO(RT) BRILIANPRENEUR program. Strengthening the MSME sector was mandatory considering that this segment supports the national economy which contributes around 61 percent of Indonesia's GDP.
"I always encourage things related to financing. MSME financing must be made easier, because if we look at the distribution of bank credit to MSMEs, it is only 21 percent of the total existing credit. And one of the biggest was BRI," said President Widodo.
President Widodo also compared banking credit distribution to the MSME sector with that of other countries which was considered better. Like in China up to 65 percent, in Japan 65 percent, and in India 50 percent. Therefore, Jokowi invites all policy makers to strengthen regulations related to lending to MSMEs.
BRI President Director Sunarso said that the UMKM EXPO(RT) BRILIANPRENEUR was a manifestation of BRI's seriousness in developing and increasing the capacity and capability of MSME businesses in Indonesia through coaching and empowerment. "The goal is that we want to maintain our customers' business in a sustainable way, so that in the future we can grow together," said Sunarso.
Sunarso also hopes that more MSMEs will become participants in the UMKM EXPO(RT) BRILIANPRENEUR. This can encourage export progress and be an inspiration for other MSME players to move up in class.
Moreover, participants in the UMKM EXPO(RT) BRILIANPRENEUR will be in the MSME EXPO(RT) BRILIANPRENEUR ecosystem or community which will share information regarding the sustainability of their business in the future. "Through this program we hope to be able to bring Indonesian MSMEs, especially those under BRILIANPRENEUR's guidance, to continue to improve their businesses, continue to move up in class.
"This is the main aim of empowering, coaching and assisting MSMEs from BRI," he added.
As an illustration, the value of agreements through business matching at the BRILIANPRENEUR Event continues to grow. In 2019 it was only US$ 33.5 million, increasing in 2020 to US$ 57.5 million and in 2021 it was US$ 72.1 million. In 2021 it will be very interesting because BRILLIANTPRENEUR will be held virtually due to the pandemic. Then in 2022 the value will reach US$ 76.7 million and this year the target is US$ 80 million.
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