60 Decibels’ Post

🚀 New Report Unveiled: Indonesian MSEs Face Digital Literacy, Support Services, and Credit Access Challenges🚀 The Small Business Barometer Report – Indonesia, a collaboration between Mastercard Center for Inclusive Growth, Mercy Corps Indonesia, 60 Decibels and Bappenas, reveals: * Digital Literacy: 81% of MSEs see digital tools as essential, but 64% struggle with effective use. * Support Services: 70% value support services, yet only one-third have access to necessary training. * Access to Credit: 62% believe they don’t need credit, but high interest rates (31%) remain a barrier for many. These findings are based on feedback from 835 MSE leaders surveyed between November 2023 and January 2024. Learn more here: https://lnkd.in/eCV7nwuR Join us in addressing these challenges and empowering Indonesian MSEs!

Pleased to launch #Mastercard's Small Business Barometer Report, created by our Mastercard Center for Inclusive Growth together with Mercy Corps Indonesia and 60 Decibels. The report identifies three critical challenges for Indonesian Micro and Small-Sized Enterprises (MSEs): 1. Digital Literacy: While 81% of MSEs recognize digital tools as crucial for growth, 64% struggle to use them effectively. Closing this gap is essential for their success. 2. Support Services: Although 70% of MSEs view support services as essential, only one-third have access to them. There is significant demand for training in finance, digital marketing, and business skills. 3. Access to Credit: Despite 62% of MSEs believing they do not need credit, high interest rates (31%) pose substantial barriers for those seeking loans. Through a better understanding of their challenges, #Mastercard aims to bolster the growth and resilience of small businesses in #Indonesia. Read the full report here https://lnkd.in/gCnFJamr Together, we can foster sustainable growth in Indonesia's dynamic digital economy. Safdar Khan Nur Hasan Subhashini (Shuba) Chandran

Indonesia has 65 million Micro, Small, and Medium Enterprises (MSME) which represent almost 99% of all businesses in the country. However, of those, only 22 million are connected to the digital ecosystem and only 18 million have access to formal financing.   A new study, the Small Business Barometer Report, published by the Mastercard Center for Inclusive Growth, Mercy Corps Indonesia and 60 Decibels, uncovers the hurdles small businesses in the country face and where they need help to grow. Download the report here: https://lnkd.in/dpcJdKV5   Together, we are driving meaningful impact and fostering sustainable growth for local businesses. #indonesia #msme #digitalecosystem #internationaldevelopment

Did you know that among Micro and Small-Sized Enterprises (MSEs) in #Indonesia:   🚀 7 out of 10 MSEs are confident in using digital tools to boost their operations. Yet, 64% are unsure which tools fit best. 📚 Almost 70% of MSEs see the importance of business, digital marketing, and finance skills training, but only a third have tapped into support services. 💰 Most MSEs haven’t used credit or loans in the past year. Why? 62% didn’t need it, and 28% found it unaffordable.   A new study, the Small Business Barometer Report, published by the Mastercard Center for Inclusive Growth, Mercy Corps Indonesia and 60 Decibels, uncovers the hurdles small businesses in the country face and where they need help to grow.   Download the report here: https://lnkd.in/dpcJdKV5

Unfortunately, households and enterprises in such markets as Peru, Bolivia, India, and Indonesia may still lack broad access to the formal financial services they need to manage their finances and attain prosperity. Some are literal: potential banking customers in rural, remote, or disadvantaged locations may be miles from the nearest financial institution. In Indonesia, the Public Digital Infrastructure (PDI), a government-supported digital financial system to facilitate microfinancing, promotes financial inclusion through education and expanded access. Micro, small, and medium enterprises (MSMEs) have long served as the backbone of Indonesia’s national economy. Despite their pivotal role in driving economic growth, MSMEs encounter obstacles that impede their growth, including limited access to capital—particularly in geographically challenging locations, negative experiences with financial services, and product schemes that don’t align with their needs https://lnkd.in/gcaY3vW4

Did you know that Malaysia lags behind Singapore in terms of financial literacy? Let's explore the surprising reasons behind this disparity to show how we can bridge the gap and empower Malaysians to achieve financial success. 1️⃣ Lack of financial education: Insufficient financial education initiatives in Malaysia make it challenging for individuals to gain essential money management skills. 🎓📚 2️⃣ Cultural differences: Traditional beliefs and values embedded in the Malaysian culture may have contributed to a slower adoption of financial literacy practices. 💭💵 3️⃣ Limited resources: Access to financial resources, such as books, workshops, and online platforms, may be limited in Malaysia, hindering the development of financial literacy among its citizens. 📖💻 4️⃣ Inadequate support system: A weak support system for financial literacy, such as a lack of financial advisors and mentorship opportunities, can leave Malaysians feeling lost when managing their finances. 🤔 ❓ 5️⃣ Low awareness: Many Malaysians are not fully aware of the importance of financial literacy and its impact on long-term financial well-being, leading to a lack of motivation to learn and improve their financial knowledge. 😫 🔻 By understanding these underlying reasons, Malaysia can make significant strides toward boosting financial literacy and empowering its population to make informed financial decisions. Let's work together to unlock the keys to financial success! Follow us for more Financial Planning and Financial Advisory information and discover how to make informed decisions for a secure financial future. #SimplyFi #FinancialLiteracy #FinancialPlanning #FinancialAdvisory

Hey good neighbour, you might be missing out. Indonesia, the 4th most populous country and the largest economy in Southeast Asia, has witnessed significant improvements in its economic and business conditions. Over the past decade, economic reforms have driven robust growth, maintaining a GDP growth rate around 5% (despite Covid 19), with the potential to reach 8% as targeted by President-elect Prabowo. In 2024, Indonesia’s IMD World Competitiveness ranking improved from 34th to 27th, placing it 3rd in Southeast Asia. The next 5 to 10 years are crucial for the new administration to steer the country towards its “Golden Indonesia 2045 Vision”. Failure to do so could prevent Indonesia from becoming a higher income country. Consequently, the incoming government is extremely motivated to improve business conditions and attract foreign direct investments. Yet, despite this wonderful progress, favourable macroeconomic conditions and Australia’s proximity, Australia’s businesses and investors appear to have overlooked the opportunities in Indonesia. In 2023, Australia only invested USD 545 million, falling significantly behind Singapore as the top investor with USD 15.4 billion. Australian pension funds also have been hesitant towards infrastructure investments in Indonesia despite Indonesia’s improved Sovereign Credit Rating, currently at BBB. I had the pleasure of meeting with Pak Bambang Brodjonegoro to discuss this paradox. I was fortunate enough to gain his insights into the future of Indonesia’s investment environment under the new administration and what it meant for infrastructure investors like us. We agreed that Australian investors have yet to fully capitalise on these opportunities. However, bridging this gap requires a concerted effort to dispel outdated perceptions and foster stronger bilateral economic ties. In doing so, Australian investors can benefit from the thriving Indonesian market, while contributing to a more integrated and prosperous region. I am optimistic about future partnerships between Australian investors and the Indonesian economy. If you are interested in discussing the Indonesian investment landscape or potential opportunities, I would love to hear from you. Pak Bambang is a prominent Indonesian economist and academic who has held several significant positions in the government including: the Minister of Finance, the Minister of National Development Planning and the Minister of Research and Technology. Pak Bambang currently serves on boards of major Indonesia’s top companies including Telkom Indonesia, Bukalapak, PT Astra International Tbk, PT Indofood Sukses Makmur Tbk, PT TBS Energi Utama Tbk and Prudential Syariah Life Insurance.

Why many of Indonesia SOE's are losses? The losses in many State-Owned Enterprises (SOEs) in Indonesia are often due to a combination of factors, including: 1. Operational and Financial Mismanagement: Inefficiencies in management practices can lead to poor financial performance¹. 2. Unstandardized Corporate Governance: Variations in governance across SOEs can result in inconsistent performance and accountability issues⁴. 3. Staffing and Human Capital Limitations: Challenges such as uncompetitive remuneration and inconsistent merit systems can affect the quality of management and staff performance⁴. 4. High Debt Levels: SOEs with significant debt burdens may struggle to remain profitable, especially if their investments do not yield expected returns¹. 5. Market Dynamics: Failure to adapt to changing market conditions and consumer demands can lead to reduced revenues and losses¹. 6. Regulatory Environment: Strict or fluctuating regulations can hinder operational efficiency and profitability¹. 7. Global Expansion Challenges: Indonesian SOEs have faced difficulties in expanding globally, which can limit their growth opportunities¹. These challenges highlight the need for comprehensive reforms and strategic planning to improve the performance of SOEs in Indonesia. Ref: (1) Consolidating Indonesia’s SOEs — Risk or Reward? - Kroll. https://lnkd.in/gkpgbDuu. (2) Indonesia's SOE reforms - Development Asia. https://lnkd.in/g9SvfJ2p. (3) Reforms, Opportunities, and Challenges for State-Owned Enterprises. https://lnkd.in/g3hcNtcW. (4) Indonesia's SOE reforms - Development Asia. https://lnkd.in/gk3dppD7. (5) SOEs’ financial losses hurt overall economy - The Jakarta Post. https://lnkd.in/gbW7STMQ. (6) Analyzing Indonesian SOEs Privatization: A Comparison between the SOEs .... https://lnkd.in/gvDrTxxS.

Information technology plays a crucial role in fostering economic growth and sustainable business development. Speaking at the 2nd National Day of Science, Technology & Innovation (STI Day 2024) on March 24, 2024, Samdech Moha Borvor Thipadei HUN Manet, the Prime Minister of Cambodia, addressed the Government’s commitment to promoting and encouraging enterprises to embrace science, technology, and innovation as the main pillar in building and developing SMEs. To support this direction and in alignment with the National Science, Technology and Innovation Policy 2020-2030, SME Bank of Cambodia has been developing and introducing “𝐂𝐚𝐦𝐛𝐨𝐝𝐢𝐚 𝐃𝐢𝐠𝐢𝐭𝐚𝐥 & 𝐀𝐮𝐭𝐨𝐦𝐚𝐭𝐢𝐨𝐧 𝐒𝐜𝐡𝐞𝐦𝐞” to support enterprises engaged in IT research and development, and the enterprises that are planning to use information technology in growing their businesses. This scheme offers an attractive annual interest rate of 5.88% along with other favorable terms and conditions. We warmly welcome entrepreneurs to consult with our Relationship Officer about your business plan. Tel: (855) 96 811 1118 If you are not following us on Telegram, you are missing a lot : t.me/sme_bank_cambodia #SMEsGoSTI #SMEBankofCambodia #Digital #Automation #BankInCambodia #FinancialServices #SMEs #TheBestBankingPartner #FinancingSchemes #ManufacturingandProcessing #AgroIndustry

In a recent opinion piece for The Business Times, our CFO, Eddy Porwanto, explores the transformative power of blended finance in emerging markets. Blended finance, which combines capital from public, private, and philanthropic sources, has been pivotal in advancing projects that might otherwise need help attracting funding due to perceived risks. He elaborates on how such financial structures enhance the investment appeal of regions like ASEAN and align seamlessly with global sustainability goals. This strategic approach underpins INA's commitment to foster impactful investments that not only yield financial returns but also drive social and economic progress across Indonesia and beyond. Read the full article here: https://lnkd.in/ggpxKRMS #SustainableDevelopment #BlendedFinance #EmergingMarkets #INA