Government Optimizes Guarantee Industry for Progress of Economic Equality

JAKARTA — The government continues to strengthen the guarantee industry as a main strategy in encouraging national economic equality.

Through wider access to capital and increasing the capacity of Human Resources (HR), Micro, Small, and Medium Enterprises (MSMEs) are expected to be able to move up a class and make a greater contribution to the Indonesian economy.

Regarding this, Assistant Deputy for Financing of the Ministry of Cooperatives, Niken Wulandari, emphasized the importance of strengthening MSME HR.

According to her, business actors need to master digital technology-based financial management in order to increase their competitiveness.

“Digitalization technology will make it easier to create good cash flow, which can be obtained through various training,” said Niken.

Sabilil Hakimi Abizuar, Senior Business Development of the Ministry of MSMEs, also highlighted the importance of resilience and resilience of business actors in facing economic challenges.

He emphasized that changing the mindset from simply seeking income to creating greater profits is the key for MSMEs to develop.

“To move up a class, MSMEs must change their mindset from just looking for money to creating greater profits. The Sapa UMKM program is here to provide confidence to financial institutions to better support MSMEs,” said Sabilil.

PT Jamkrindo as a credit guarantee institution also shows its commitment to supporting MSMEs and cooperatives.

Head of Jamkrindo’s Business Division, Wahyu Hidayatullah, revealed that until December 2024, the realization of credit guarantees had reached IDR 300 trillion, with an open capacity of more than IDR 200 trillion.

“Jamkrindo guarantees MSMEs that are viable for business. We hope that the recovery process will run smoothly so that credit guarantees are healthier and more sustainable,” explained Wahyu.

With the collaboration between the government, guarantee institutions, and the business community, the transformation of MSMEs towards a larger scale is increasingly wide open.

Optimizing the guarantee industry is believed to accelerate economic equality and support the target of Indonesia Emas 2045 as a real vision that can be achieved. (*)