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55 Million Indonesian MSMEs Cannot Access Bank Loans

55 Million Indonesian MSMEs Cannot Access Bank Loans

55 Million Indonesian MSMEs Cannot Access Bank Loans

JAKARTA - In terms of quantity, MSMEs in Indonesia currently dominate the business sector in various regions. Out of a population of 250 million, approximately 56.5 million people work in the MSME sector. However, despite the total number of MSMEs in Indonesia, most MSME players have not gained access to banking services for additional capital. In fact, 55.8 million MSMEs have yet to reach banking access.

"Many are trying to develop MSME businesses. But there are still 55.8 million MSMEs that do not have access to banks. They are not bankable," said former Minister of State-Owned Enterprises and current President Commissioner of Pertamina, Tanri Abeng, at the World Islamic Economic Forum at the Jakarta Convention Center, Jakarta, on Thursday (August 4, 2016).

The government is expected to immediately restructure MSMEs. This restructuring includes improving the quality of human resources in managing businesses with a conglomerate approach.

"Like any organization, the most important thing is management. All the potential in Indonesia has a market. But the most important thing is how it is managed. If management is good, banks will find it easier to trust," he concluded. (Source: okezone.com)

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