Waiting for the Ultra-Micro Finance SOE Holding Debut

By Editorial Team 19/01/2021
Investigating Fund
Summary

The Ministry of State-Owned Enterprises (SOE) will establish an ultra-micro financing holding consisting of PT Bank Rakyat Indonesia Tbk (BRI), PT Permodalan Nasional Madani (PNM), and PT Pegadaian. Deputy SOE Minister Kartika Wirjoatmodjo said that the ultra-micro holding targets 57 million micro, small, and medium enterprises (UMKM), with 30 million of which do not have access to formal funding.

Kartika said the main objective of establishing an ultra-micro financing holding is to build an ecosystem that can channel loans to MSMEs and ultra-micro businesses. The synergy of financial SOEs, he said, could reduce the cost of funds, form network synergies, and encourage the digitization of MSMEs. Kartika said there are currently 64 million MSMEs units representing 99 percent of Indonesia's business structure. MSMEs also absorb 97 percent of the national workforce with a 60.3-percent contribution to the Gross Domestic Product (GDP).

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