Business Matching Export KKI 2022 Thursday, 26 May 2022
BM Export Participant:
Business Matching Financing Saturday, 28 May 2022
BM Financing Participant:
Business Matching Financing and Export of KKI 2022
Micro, Small and Medium Enterprises (MSMEs) are part of the national economic entity that has great potential in improving welfare, as reflected in the dominance of the number of business units (99.9%), the high absorption of labor (96.92%) and the high contribution large to GDP (60.51%). In addition, MSMEs also have the resilience to support the country's economy even when facing an economic crisis or during the Covid-19 pandemic which has a significant impact on MSME performance. This shows that the resilience of MSMEs can be one of the economic buffers that are able to withstand periods of pressure and grow back more quickly. Based on this, MSMEs play an important role in supporting economic stability so that their sustainability needs to be supported in accelerating economic transformation towards Advanced Indonesia.
In supporting the efforts to develop MSMEs, Bank Indonesia formulates MSME development policies through three policy pillars, namely strengthening corporatization, capacity building, and access to financing to encourage competitive MSMEs to accelerate inclusive economic growth. Strengthening corporatization is expected to encourage the creation of an integrated business ecosystem that supports productivity improvements supported by increasing the capacity of MSMEs to improve MSME capabilities, both in terms of human resources and business development. Furthermore, for MSMEs that have increased their capabilities and sustainability through these two efforts, access to financing can be facilitated so that MSMEs can advance their class and achieve competitive MSMEs. These three pillars are implemented with an end-to-end, sustainable approach, and prioritize synergy with stakeholders, especially Ministries/Agencies and Local Governments.
One form of synergy carried out by Bank Indonesia to implement the three pillars is the Karya Kreatif Indonesia (KKI) activity which is a flagship program for MSME development that is carried out periodically. One of the activities carried out in the 2022 KKI with the theme Go Digital and Go Global, is export business matching and financing business matching. Business matching activities include (1) pre-business matching, (2) one-on-one meetings, and (2) business matching celebrations conducted on a hybrid basis.
The export pre-business matching activity aims to provide insight and knowledge related to export procedures and requirements, strategies for dealing with the export market, as well as knowing tips and tricks for communicating with buyers. Furthermore, MSMEs will participate in one on one meeting activities to communicate directly with buyers in promoting their products to penetrate the export market. Participants consist of importers and MSMEs/aggregators who are fostered by Bank Indonesia or ministries/institutions (Ministry of Cooperatives and Small Medium Enterprises (SMEs), Ministry of Industry, Ministry of Tourism and Creative Economy, Ministry of Trade, Ministry of Marine Affairs and Fisheries, and National Craft Council).
Pre-business matching financing activities are also carried out to provide education from the bank and non-bank financing institutions to MSMEs regarding financing products, schemes, terms, credit requirements, etc. After the pre-business matching will be continued with the implementation of a one-on-one meeting for selected MSMEs/aggregators that are fostered by Bank Indonesia or ministries/institutions (Ministry of Cooperatives and Small Medium Enterprises (SMEs), Ministry of Industry, Ministry of Tourism, and Creative Economy, Ministry of Trade, Ministry of Marine Affairs and Fisheries, and National Craft Council) with financing institutions. The financing institutions participating in the BM Financing are Bank Rakyat Indonesia, Bank Mandiri, Bank Negara Indonesia, Bank Syariah Indonesia, Regional Development Banks, Indonesian Export Financing Agency (LPEI), and Fintech (Koinworks, Amartha, Investree).
The implementation of BM exports and BM financing ended with a business matching celebration which was a form of appreciation to MSMEs that had succeeded in obtaining financing and exporting with the largest results. The appreciation was carried out by showing the process of signing export and financing agreements between MSMEs with buyers (exports) and financing institutions.
Business matching is a medium for MSMEs to meet with access to financing and other business developments. The KKI business matching participants consist of aggregators and importers, banks, fintech lending, and the Indonesian Funding Fintech Association (AFPI). MSMEs that are included in the KKI business matching are MSMEs fostered by BI, partners, and ministries/institutions (Ministry of Cooperative SMEs, Ministry of Industry, Ministry of Tourism and Creative Economy, and Ministry of Trade). Through this business matching, it is hoped that MSMEs can expand business relations in an effort to increase market access, especially export market access, as well as access to financing to increase their business scale. This activity also aims to disseminate and implement the market access facilitation program and MSME financial access conducted by Bank Indonesia as an effort to encourage competitive MSMEs to accelerate inclusive economic growth. In addition, business matching also provides education to MSMEs regarding appropriate financing schemes and export mechanisms to increase their business scale.
Business matching activities include (1) pre-business matching, (2) one-on-one meetings, and (2) business matching celebrations. The series of business matching agendas are carried out virtual and hybrid. Pre-business matching activities are education from the bank and non-bank financing institutions to MSMEs. One-on-one meetings are held for selected MSMEs (BI-assisted MSMEs, partners, and other ministries/institutions) with financing institutions and potential buyers. The celebration activity is a video screening of the signing of an export and financing agreement, given to MSMEs that have succeeded in obtaining financing or exporting.