By: Ajeng Mufadillah
The process of digitizing ultra micro loans will be beneficial to encourage accountability, because beneficiary data can be more accurate.
In the launch of the Ultramikro Credit Financing Digitalization Program in Jakarta on Tuesday, Finance Minister Sri Mulyani Indrawati said, with the use of digital technology, this program at the grassroots level could be more accountable. Through by name and by address the transaction path can be more easily seen.
Sri Mulyani explained that the use of the data could be evidence that economic activity at the grassroots level had increased and the government could get convenience in evaluating the effectiveness of this activity.
In addition, the use of digitalization can provide broader access to ultra micro lending, especially to people who have never had access to finance and residents in remote areas who want to start business activities.
He said, this collaboration could encourage penetration into new players, not just that. We want expansion, because there are still many who have not gotten financial access. Thus, economic development in the community can be better.
He also stressed that the use of digital technology can also remove the obstacles experienced by potential entrepreneurs at the grassroots who have had difficulty gaining access to banks and suppressing high costs. He said, digital technology could allow penetration, without very high overhead costs. In the past BRI could not be defeated by other banks because they had branch offices to the regions. But, the existence of BRI is currently rivaled by fintech ‘which only requires a smartphone.
As part of the micro-business empowerment, the government decided to build a digital ecosystem to provide alternative cash-disbursement methods for ultra micro credit financing debtors. One of the efforts made is to conduct a trial with four payment system service providers that have obtained Bank Indonesia’s permits, namely PT Telkom Indonesia (T-Money), PT Telekomunikasi Selular (T-Cash), PT Bukalapak.com (Bukalapak) and PT Dompet Anak Bangsa (Go-Pay). This trial activity will take place for a year with regular evaluation every three months to measure the level of receipt of debtors for ultra micro credit financing related to transactions electronically as well as the process of recording and reporting on debtor transactions.
For this reason, debtors who want to choose the cashless method can take advantage of electronic money platforms and technology to facilitate transactions and provide a market place for micro-businesses in the economic digital era.
Through digital technology, it is expected to create an increase in financial inclusion for the community and the government can monitor spending patterns and transactions carried out by debtors at the lowest level in the utilization of the financing received.