Prioritizing education over promotion, BRI CEO Sunarso shares five steps to encourage Indonesian SMEs to grow

VIVA – The micro, small and medium-sized enterprise (MSME) sector is an important pillar to stimulate Indonesia’s economic development, as SMEs contribute 60% of the gross domestic product (GDP) and employ 97% of the workforce in Indonesia. Therefore, as the main foundation of the national economy, the SME sector should be further strengthened and encouraged to achieve greater development and stability.

BRI President Director Sunarso revealed that the company has a strategy to empower small and medium-sized businesses to be worthy of being seen by banks and receiving financing.

“In fact, our SMEs need more than just advertising. Why is that? Promotion actually puts SMEs in the last place. In front of banks, in front of financial institutions. “If we educate, we will really put SMEs as partners together with banks,” Sunarso said.

According to Sunarso, there are five things that should be provided about SMEs. First, about the entrepreneurial spirit.

“This is what we need to inform MSMEs. Since there are so many MSMEs, there are still different levels,” Sunarso said.

The second has to do with their administrative and management skills. According to Sunarso, this is an important task. Because these two things are still very large areas of work.

Thirdly, on SMEs’ access to information, markets, technology and finance.

“That’s also important,” he said.

Fourthly, Sunarso said that small and medium-sized businesses should also be knowledgeable about sustainability. Whether it is about corporate sustainability, especially environmental sustainability.

Finally, Sunarso highlighted the importance of education on the principles of good corporate governance for SMEs.

“We need to empower MSMEs to run their businesses with good GCG principles. This is what makes MSMEs grow and develop sustainably,” he said.

In terms of credit allocation to the MSME segment, as of the end of June 2024, BRI managed to allocate credit to the MSME segment worth IDR 1,095.64 trillion, or equivalent to 81.69% of BRI’s total credit allocation.

“One way BRI is committed to supporting the development of the national economy is to continue to foster job creation, especially in the SME segment, through the distribution of quality credit and other empowerment programs,” Sunarso said.