BackgroundThe Promoting SME Enterprises through Improved Entrepreneurs’ Access to Financial Services (PROMISE II IMPACT) project aims to strengthen the enabling environment to drive a more inclusive financial sector for SMEs, generating post-pandemic economic growth and employment opportunities. The project will provide technical assistance support, including training to increase the capacity of Financial Service Providers (Bank Perkreditan Rakyat and Bank Pembangunan Daerah) to serve the SMEs in productive sectors in a select location of the project and enhance the capacity of those SMEs to expand their business and create employments.
These objectives are achieved inter-alia through promoting digital transformation and strengthening the targeted SMEs' value chain and business ecosystem. In addition, the project will also support the financial service authorities and the national and regional governments to enhance financial inclusion in Indonesia further.
- Improved productivity, efficiency and market of SMEs and their value chain, which resulted in improving skills in entrepreneurship, sustainable access to finance, and growth
- Financial Service Providers are capacitated to offer demand-based products and services using technology and digital platform, better manage their risk, and can expand their portfolio in productive sectors
- OJK is supported in its effort to revitalize BPRs and the transformation of BPDs, and a model of intervention is developed. Coordination and knowledge sharing amongst policymakers and authorities are supported for efficient & effective financial inclusion policies and programmes.
- Financial Service Authority (OJK)
- The Coordinating Ministry of Economic Affairs (CMEA)
- The National Council for Financial Inclusion (DNKI)
- Ministry of Manpower
- Employers’ Association of Indonesia (APINDO)
- Trade union confederations
- Model 1: Facilitate the creation of a new value chain ecosystem and if possible, digitalize it
- Model 2: Enhance the existing value chain ecosystem through adding buyers, more financing (FSP, fintech), new trainings (Business Development Services Providers); and also digitalize it
- Model 3: Provide support for capacity building and digital technology adoption for (i) SMEs (ILO training modules), (ii) FSPs (upgrading CBS of BPRs, coordinated by BPR Association (PERBARINDO), (iii) Dinas offices and Village-owned enterprises (BUMDes (eq e-Catalogue
- Model 4: Establish a Rapid Response support facility (an ad-hoc short-term activity) to support policy and programs to enhance financial inclusion and SME financial access)
- SMEs in productive sectors
- Bank Pembangunan Daerah (BPD)
- Bank Perkreditan Rakyat (BPR)
- Business Development Support (BDS) Providers