Fintech Ready to Help Speed ​​Up the Distribution of PEN to MSMEs

JAKARTA, KOMPAS.com – The Indonesian Joint Funding Fintech Association (AFPI) and the Indonesian Chamber of Commerce and Industry (KADIN) ensure, fintech lending ready to assist the government in accelerating the distribution of the National Economic Recovery program (PEN) stimulus to micro, small and medium enterprises (MSMEs).

AFPI Chairman Adrian Gunadi said his party was ready to welcome the government’s initiative which had made a breakthrough by providing a stimulus program for MSMEs through the National Economic Recovery (PEN) program.

He said, one of the biggest challenges is how the distribution of the stimulus can take place on target, on time and can effectively help the affected MSMEs, so that their businesses can survive and grow back in line with the reduced impact of the Covid-19 pandemic.

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“Through collaboration with digital ecosystems, organizers can take a more comprehensive picture of the risk profile of MSMEs,” said Adrian in a national seminar. online, Thursday (3/9/2020).

The MSME sector is one of the sectors most affected by the Covid-19 pandemic. Whereas so far, MSMEs are the main support for the Indonesian economy, which contributes 57 percent to Gross Domestic Product (GDP) and absorbs 97 percent of the workforce in the country.

“Of the 157 members of AFPI, the accumulated distribution of loans nationally reached Rp. 113.46 trillion, an increase of 153 percent in June 2020 on an annual basis. From this figure, the majority is channeled to the productive sector, namely to MSME players, as well as to the underserved and underbanked people, “said Adrian.

Distribution of funding to actors fintech lending Indonesia is dominated by the productive sector 68 percent, 58 percent consumptive, and 7 percent sharia. Fintech lending financing is channeled through a digital platform with a simpler and faster process, making it easier to reach the public and more flexible when a pandemic occurs which reduces physical contact.

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