Economic expert at the Institute for Development of Economics and Finance (Indef) Eko Lisytanto lauded the establishment of ultra-micro state-owned financial holding company that could free micro, small, and medium enterprises (MSMEs) from loan sharks.

“I am optimistic that the (establishment of the) ultra-micro state-owned financial holding company would disrupt the activities of loan sharks,” Listyanto told ANTARA in here, Tuesday.

The holding company, focused on providing easy and affordable assistance to MSMEs, will be an alternative for MSME entrepreneurs seeking financial support, so they no longer need to depend on loan sharks for capital sources for their enterprises, he remarked.

The economic expert stated that the ultra-micro financial holding company should also support and encourage MSME entrepreneurs to develop the entrepreneurship ecosystem required by the industry in Indonesia.

“The ultra-micro holding company should not only provide easy and affordable financial assistance but also accommodate empowerment models for the industry on multiple business platforms, adapting to the entrepreneurs’ needs,” Listyanto noted.

The ultra-micro financial holding company comprises three state-owned financial companies: Bank Rakyat Indonesia (BRI), as the parent company, with two child companies; the pawnbroker company Pegadaian; and financial services company Permodalan Nasional Madani (PNM).

The holding company was established on Monday (Sept 13) after the signing of a capital deed to officially hand over government shares in Pegadaian and PNM to BRI, the designated parent company, as the government’s capital participation for the holding company.

The capital deed was signed by State-Owned Enterprises Minister Erick Thohir and President Director of BRI Sunarso in the presence of general directors of Pegadaian and PNM, as well with the BRI Privatisation Team head.

After the signing ceremony, Minister Thohir stated that the holding company was established to encourage the development of Indonesia’s economy at the grassroots level.

Source: Antara News