Umkm

Since March 2023, the ILO has started the implementation phase of the PROMISE IMPACT phase 2 (PROMISE II IMPACT) project in partnership with APINDO UMKM aimed at increasing the scale of business, productivity and sustainability of SMEs by increasing access to financial services by utilizing digital technology. Currently, the process of digitalizing the value chain ecosystem of several commodities has begun, namely dairy cows owned by the South Bandung Livestock Cooperative (KPBS) Pangalengan in West Java, seaweed owned by PT. Algae Sumba Timur Lestari (Astil) in East Sumba in East Nusa Tenggara, and patchouli oil owned by the Atsiri Research Center of Syiah Kuala University in Aceh Besar in Aceh. This project also provides training for SMEs in terms of financial management and entrepreneurial knowledge. In addition, special attention is given to BPR and BPD to improve services to SMEs through training and providing technical assistance for developing the capacity for banking digitalization, including strengthening the Core Banking System and using digital technology for better credit risk management, as an effort to accelerate the digital transformation of BPR. Furthermore, support for strengthening the policies and programs of the National Council for Inclusive Finance to increase financial access for MSMEs and accelerate inclusive finance is also one of the activities in the implementation of this project. As a form of progress report and activity improvement, the ILO held a Project Advisory Committee Meeting, where APINDO UMKM was represented by Mrs. Lishia Erza, Chair of the Entrepreneurship and Capacity Building and Inclusive Economy Committee on June 6, 2024, at the Pullman Thamrin Hotel, Jakarta. The purpose of this meeting was to provide a report on the progress of the implementation from January 2023 to March 2024, discuss future project activity plans and encourage collaboration and synergy among project partners. The program was opened with remarks, coordination, and awards from the Deputy for Macroeconomics and Finance of the Coordinating Ministry for Economic Affairs of the Republic of Indonesia, Ferry Irawan, to three focus locations, namely the Patchouli Industry in Aceh, the Merdeka Credit Program for seaweed farmers in NTT, and the South Bandung Livestock Cooperative for dairy farmers in West Java. The activity was continued with an FGD session where all stakeholders from the Ministry, BPR, BPD, Regional Secretary of East Sumba, companies, and supporting organizations of the program including Mrs. Lishia Erza for APINDO delivered testimonies and input for the Promise II Impact program in the future.