APINDO: Access to Finance and Capital is the Main Challenge for MSMEs
Wednesday, 28 August 2024Chairman of the Indonesian Employers Association (APINDO), Shinta W. Kamdani, stated that the difficulty in accessing finance and capital is the main challenge faced by Micro, Small, and Medium Enterprises (MSMEs) in growing their businesses.
"MSMEs face significant challenges that affect their competitiveness and growth," she said during the APINDO National Work and Coordination Meeting (Rakornas) in Surabaya, East Java, on Wednesday.
In addition to issues of finance and capital access—which, according to APINDO's latest survey, is the main challenge for 51% of MSMEs—market access, marketing, and promotion also pose challenges for 35% of business owners.
Furthermore, other challenges faced by MSMEs include access to raw materials, production tools, and technology, which accounts for 9%, as well as complex regulations and limited skills, which contribute 5%.
Shinta emphasized that these various challenges must be addressed immediately as MSMEs have become the backbone of the national economy, capable of absorbing 96.6% of the workforce.
According to her, if these issues are not resolved, MSMEs could face increasingly significant challenges, affecting their competitiveness and growth.
Therefore, APINDO is committed to promoting transformation in this sector through the MSME Roadmap, which includes the formation of a special task force, provision of funding, improvement of business ease, and facilitation of market access and information.
In addition, Shinta said that APINDO is also focused on strengthening the MSME database and ensuring sustainable practices through the Inclusive and Sustainable MSME program, which is expected to enhance MSME competitiveness.
"In the end, this will make them more adaptive to global challenges and contribute more significantly to national economic growth," she said.
Chairman of APINDO East Java Regional Board, Eddy Widjanarko, added that the strength of MSMEs cannot be separated from APINDO's role, as many members across various regions are still involved in the Small and Medium Enterprise (SME) sector.
"These members are also the backbone of the local economy," said Eddy.
For instance, APINDO members in Banyuwangi and Jember have successfully exported products like mangosteen, okra, and edamame, allowing them to accommodate local farmers.
"This is proof that APINDO is committed to developing MSMEs into Small and Medium Industries (IKM) and beyond. There is great potential here that we need to develop," said Eddy.
source : https://www.antaranews.com/berita/4292083/apindo-akses-keuangan-dan-modal-jadi-tantangan-utama-umkm