THE MINISTRY of Cooperatives and SMEs (KemenKopUKM) continues to encourage efforts to increase digital financial literacy by holding the 57th APEC SMEWG side event, Policy Dialogue on Advancing Financial Inclusion for MSMEs: Understanding the Important Role of Digital Financial Literacy, to increase financial inclusion for MSME players.
Expert Staff to the Minister for Productivity and Competitiveness of the Ministry of Cooperatives and SMEs, Herbert HO Siagian, said that currently the resilience of MSME businesses is an important issue considering that MSMEs account for 97 percent of all businesses and employ more than half of the workforce in all APEC economies. With this large number of MSMEs, he continued, if they are supported by the digitalization ecosystem, their contribution will encourage an increase in the potential for GDP.
“The aim of this policy dialogue forum is to provide a forum for APEC Economies to share policy experiences and learning regarding how MSMEs can increase their capacity in utilizing digital tools to access financial services,” said Herbert on Thursday (23/4) in Bali.
He hopes that this forum can overcome the problem of MSME access to finance by enabling MSMEs to carry out digital transformation for better financial inclusion. Considering that MSMEs are considered to be a motor for accelerating economic growth.
On the other hand, access to finance is an important aspect in the development, growth and success of MSMEs. But unfortunately, said Herbert, most MSMEs still face problems in accessing finance, such as lack of information and access to financial services, lack of digitalization capabilities, and lack of human resources who have financial capabilities.
Therefore, MSMEs need to be provided with policy support and the willingness of MSMEs to transform digitally. Providing digital finance is very important in increasing the digital literacy of business actors.
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“Digitalization is the key to increasing the ability of MSMEs to develop and expand their access to financial institutions, including digital financing systems,” said Herbert.
On the same occasion, Director of Trade and Economic Analysis Office of the Chief Economist Global Affairs Canada and also Chair of APEC SMEWG, Aaron Sydor explained that there are four important elements in increasing digital literacy for MSMEs.
“The first is providing access to capital and other sources of financing, the second is access to financial services, the third is access to digital financial liberation, and the fourth is access to financial inclusion,” said Aaron.
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Likewise, Head of the Unit on SME and Entrepreneurship Transformation, OECD, Lucia Cusmano, said that the emphasis to achieve financial inclusion is on financial education.
“Without financial education that opens up digital literacy, further financial inclusion will not be achieved,” explained Lucia.
On the other hand, Head of the Legal and Cooperation Bureau of the Ministry of Cooperatives and Small and Medium Enterprises, Henra Saragih, added that the APEC Policy Dialogue Theme forum is in line with the 4th priority area of the APEC SMEWG Strategic Plan for 2021-2024, namely “Access to finance and alternative financial solutions”, as well as Peru’s Chairmanship in APEC 2024, namely Empower, Include, Grow, especially for the second priority area, namely Innovation and digitalization to promote the transition to the formal and global economy.
“The initiation of the APEC Policy Dialogue project is the first step for the Ministry of Cooperatives and SMEs in efforts to escalate Indonesia’s commitment, as well as take concrete benefits from regional cooperation forums for MSMEs in the region, both now and in the future,” he concluded. (Z-6)
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