JAKARTA, 5 January, 2020 - The government has been actively promoting various policies and incentives to maintain the sustainability of the Micro, Small and Medium Enterprises (MSMEs) sector in Indonesia, both before and during the pandemic. MSME sector contributions to the national economy accounted for 60.34% of the total Gross Domestic Product (GDP) in 2018, and this increased to 65% (IDR 2,394.5 trillion) in 2019. MSMEs are also responsible for absorbing up to 97% of the country's workforce.
The achievements of MSMEs cannot be separated from the role played by financial services, including those provided by PT Bank Maybank Indonesia Tbk. ("Maybank Indonesia"). By the third quarter of 2020, Maybank Indonesia had distributed Community Financial Services (CFS) Non-retail segment credit facilities totaling IDR 38.7 trillion, including IDR 22.6 trillion credit for the MSME sector. The total credit provided by Maybank Indonesia (including via Global Banking and CFS) to the market reached Rp.109.4 trillion during the same period.
The absorption of Maybank Indonesia credit by the MSME portfolio dominated at 78%, providing MSMES with short-term working capital loans to finance business operations, trade receivables, purchases of raw materials, and so on. Meanwhile, 22% was used for long-term investment loans to support MSME business requirements such as the financing of investment projects, business expansion, purchasing production equipment, and others.
Maybank Indonesia's contributions to the sustainability of the MSME sector through lending has gained awards, most recently on 3rd December 2020 from Bank Indonesia (“BI”), who presented Maybank Indonesia with the award for the Best Supporting Bank for MSMEs in the BUKU Bank 3 and 4 categories during the Bank Indonesia Annual Meeting held virtually. This award for the Best Supporting Bank for MSMEs in the BUKU Bank 3 and 4 categories is the third award received by Maybank Indonesia since 2018. This also represents the appreciation of the national government for the Bank's efforts to empower the domestic MSME sector.
Director of Community Financial Services at Maybank Indonesia, Steffano Ridwan, said, "Maybank Indonesia's business credit distribution is based on the principle of empowering the community, as the Bank must be able to meet the dynamic requirements of MSMEs for various facilities within a fast, simple, and flexible lending process."
Maybank Indonesia's leading solutions for distributing credit facilities to MSMEs is carried out via various mechanisms. Firstly, through a supply chain program that integrates the roles of as many as 73 MSMEs as producers, distributors, suppliers, and resellers to retailers (upstream to downstream) within a unified business network.
Secondly, they are channeled through partnerships with banking and non-banking institutions via the MyLinkage program, such as People's Credit Bank (Bank Perkreditan Rakyat/BPR), partnerships with palm oil cooperatives and in the form of venture capital. In December 2019 Maybank Indonesia disbursed total credit of IDR 4.1 trillion through the MyLinkage partnership program.
Steffano continued by saying, "According to Maybank Indonesia's vision of humanizing financial services, we strive to provide access to financing that is diverse, easy to access and in accordance with the features of MSME customers in conducting their business, given the important contributions of MSMEs to the resilience of the national economy."
Maybank Indonesia also actively supports the empowerment of MSMEs through participating in various coaching, mentoring and training activities, and collaborating with the Indonesian Creative Economy Agency (BeKraf) to provide banking transaction and financing services to entrepreneurs within the creative economy. Maybank Indonesia and the Maybank Foundation social foundation owned by the Maybank Group are also developing economic empowerment programs targeting communities of people with disabilities through the Reach Independence & Sustainable Entrepreneurship (RISE) program conducted online in several cities of Indonesia.
Other awards presented to Maybank Indonesia include the following:
- Financial Insights Innovation Awards 2015 (FIIA 2015) organized by IDC Financial Insights in the category of Enterprise Transformation for CoOL Pay (Corporate Online Payment) & Synergy (Distribution Card) in Financial Supply Chain Management;
- Platinum Award in the Women Empowerment category at the Global CSR Award 2015 from Pinnacle Group International;
- Best SME Bank in Indonesia Award (2007-2016) presented by Alpha Southeast Asia;
- The Best Practice in Micro Financing for Women at the 2016 Sustainability Report Awards (SRA);
- Pioneer of Community-Based Financing for MSMEs with a supply chain scheme at the Indonesian Business Record (ReBi) at Recognition Night from TERA Foundation and the Seputar Indonesia Newspaper.
Notes for editors:
PT Bank Maybank Indonesia, Tbk. (“Maybank Indonesia”) is one of the largest banks in Indonesia, with access to the regional and international network of Maybank Group. Maybank Indonesia provides a range of products and services, including comprehensive Sharia services, for individual and corporate customers through Community Financial Services (Retail Banking and Non-Retail Banking) and Global Banking, as well as automotive financing through subsidiaries WOM Finance (two-wheeled vehicles) and Maybank Finance (four-wheeled vehicles). Maybank Indonesia also continues to develop Digital Banking services and capacity through Mobile Banking, Internet Banking, Maybank M2U (internet banking-based mobile banking) and various other channels.
As of 30th Setpember 2020, Maybank Indonesia had 362 branches including Sharia branches, throughout Indonesia and one overseas branch (Mumbai, India), 22 Mobile Cash Vehicles and 1,480 ATMs including 80 CDM (Cash Deposit Machines) connected to over 20,000 ATMs as part of the ATM PRIMA, ATM BERSAMA, ALTO, CIRRUS network connected to 3,500 Maybank ATMs in Singapore, Malaysia and Brunei. By end of September 2020, Maybank Indonesia managed Rp116.6 trillion in customer deposits and Rp177.3 trillion in assets.
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