Indonesian Chamber of Commerce and Industry (KADIN) and world's leader in digital payment systems, Visa, signed a memorandum of understanding (MoU) to improve Indonesian micro, small and medium enterprises' (MSMEs') skills and financial literacy.
"One of the keys to helping MSMEs grow and advance is by increasing digital financial inclusion," Chairman of KADIN Indonesia Arsjad Rasjid stated here on Monday.
He said SMEs have an important role to play as a catalyst for the Indonesian economy since they are able to absorb a sizable workforce of 97 percent and dominate 99 percent of Indonesia's business structure.
However, he assessed that MSMEs in Indonesia still have limitations in terms of access and financial literacy.
On the other hand, the digital skills of MSMEs are still relatively low, thereby hindering scalability and integration with export markets and global value chains.
Moreover, the government is currently targeting 30 million MSMEs to enter digital platforms by 2024.
However, the Indonesian E-commerce Association (idEA) noted that currently, only around 19 million MSMEs are already operating on digital platforms.
"I hope that this collaboration would expand financial inclusion and improve digital skills, especially for MSMEs," Rasjid noted.
The provision and development of digital financial skills for MSMEs is carried out through the distribution of Practical Money Skills (PMS) modules.
The module contains educational skills and financial literacy guides from Visa that will be distributed to various MSMEs under the auspices of KADIN Indonesia.
Visa will also be involved in various digital financial skills programs that will be implemented by KADIN Indonesia and other partners.
President Director of PT Visa Worldwide Indonesia Riko Abdurrahman said they are committed to continuing to help improve the financial management capabilities of Indonesian people, especially MSMEs, which support the economy in Indonesia.
"It is an honor for us to be able to support KADIN by sharing global best practices in the form of financial and business management that has been tested in various parts of the world," he affirmed.
Through this collaboration, he is upbeat that VISA can help MSMEs in Indonesia understand and apply the basics of good financial management.
Abdurrahman also expressed optimism that MSMEs would understand the importance of going digital as an important foundation in developing their business in the new normal era. (Antaranews)