Challenges to Sustainable Financing Implementation for MSMEs in Indonesia

In an article for Indonesian media, TechnoBusiness, YAMADA Consulting & Spire Consultant, Ana Nadila highlights the challenges that Micro, Small and Medium-sized Enterprises (MSME) face in implementing sustainable financing.


Micro, Small and Medium-sized Enterprises (MSME) play a vital role in Indonesia’s economic growth. Indonesian Ministry of Finance data from 2023 reveals over 64.2 million MSME firms contributing 61.4% to GDP and employing 97% of the country’s workforce.

With such a huge contribution to the nation’s economy, the government promotes sustainable financing for MSMEs through initiatives like People’s Business Credit, with banking institutions also facilitating programs such as supply chain financing and fintech collaborations.

However, despite these efforts, MSMEs encounter challenges in accessing business capital. Y&S research categorizes banking challenges into profitability, risk assessment, and market development hindrances.

Primary obstacles include credibility gaps, collateral shortages, and limited business management skills, exacerbated by infrastructure gaps. In the article, Y&S shares its recommendations that the government and banking institutions consider empowerment training, digital literacy programs, fintech partnerships, and improving internet infrastructure in remote areas to support MSME empowerment and further development.

Click here to read the full article at TechnoBusiness.

For media enquiries, please contact:

Marie Teo
Manager, Group Marketing Communications
YAMADA Consulting & Spire
Phone: +65 6221 7727
E-mail: [email protected] 

Lorem ipsum

By lorem

Our expertise,
your success.

Craft your journey to growth with us. We are committed to personalizing solutions, delivering them seamlessly, and unlocking new opportunities. Get in touch and experience the Y&S difference.