Jakarta. The government has renewed its commitment to empower Indonesia’s micro, small and medium enterprises (MSMEs).

The government has rolled out programs to help provide ease of doing business and access to financing, including via the microloan program KUR. Indonesia is also encouraging businesses to embrace digital transformation.

"These MSMEs receive almost Rp 300 trillion (around $16.8 billion) in KUR microloans. The disbursement is around 50.83%,” Airlangga told a MSME festival in Jakarta on Friday.

As of June 28, the KUR disbursement had reached Rp 147.70 trillion to 2.32 million debtors. Airlangga also added that the government had provided export financing. Businesses may access the funds via 

export financing institutions and industrial credit. They are also available for labor-intensive and capital-intensive sectors, including textiles, textile products, furniture, and timber.

There is also the housing microloans for up to Ro 50 trillion.  This program can be used for home renovations with a financing ceiling of up to Rp 500 million and is targeted to reach 100,000 homes.

The government is also continuing to strengthen services for MSMEs through digital transformation to make various business services more accessible, faster, and integrated. One of these initiatives is through an integrated digital platform Sistem Aplikasi Pelayanan or SAPA UMKM. MSME Minister Maman Abdurrahman described this platform as the government’s “concrete step in providing optimal service” for local small businesses. 

SAPA UMKM acts as an integrated service center to record, facilitate, and develop MSME businesses in Indonesia. MSMEs can access various integrated services, from data collection and business capacity development to legality, to expanding access to various government programs.

The festival also certified 17 Grade A incubator institutions. It also saw the signing of mass KUR agreements for 350 MSME KUR recipients.

Airlangga also told the small businesses to embrace digital technology, including artificial intelligence (AI). The upcoming ASEAN Digital Economy Framework Agreement or DEFA is also expected to open up opportunities for a broader regional digital market, supported by interoperable payment systems such as QRIS, making cross-border transactions even easier.

"We encourage MSMEs to utilize AI for market analysis and even search for new opportunities,” Airlangga said.