Indonesia’s MSMEs (Micro Small and Medium Enterprises) are crucial to the economy in terms of sustainable growth, employment, and social inclusion. According to the “Ministry of Co-operatives and SMEs,” Indonesian MSMEs account for nearly 97% of domestic employment.

Today, the MSME sector struggles to survive the adverse effects of the COVID-19 pandemic. Micro, Small, and Medium Enterprises (MSME) Association (Akumindo) Chairman Ikhsan Ingratubun estimates that MSME sales dropped 30 to 35 percent across Indonesia from February until March 9, 2020. With their revenues continuing to decline, they now face a reality where if they don’t get a line of credit in this time of crisis, it’s only just a matter of time before their businesses will cease to exist.

In response to alleviate the struggling MSMEs to tide over this crisis, Mutiara Garuda Digital (PearlPay Indonesia), and Gomodo have signed a Memorandum of Understanding (MOU) to identify which of the 6,000 MSME clients of Gomodo need to have access to a line of credit and refer them to PearlPay’s partner banks in Indonesia so they can start rebuilding their livelihood.

Yoni Depari, former Deputy Director of Bank Indonesia (Central Bank of Indonesia), and now CEO at Mutiara Garuda Digital (PearlPay Indonesia) said,

“In a post-COVID-19 society, the MSMEs market, in general, will be shifted fundamentally towards embracing digital technologies. Gomodo, as an MSME digital enabler, is in the best position to seize that huge opportunity.”

The alliance and initiative with Gomodo aim to help MSMEs during these challenging times. They can connect to PearlPay’s partner banks in Indonesia and gain access to a credit facility that can help support their business.

Gomodo CEO and Founder Lius Widjaja shared that one of Gomodo’s core tenets is to digitally empower tourism and services of MSMEs in developing countries. This includes not just providing rapidly-deployed modern business software tools but also digital financing solutions that can address their needs.

“PearlPay, in this context, is the best ecosystem partner that we could have wished for, and we are very much looking forward to working closely with them to connect struggling businesses with their bank partners,” Widjaja added.

Big problems are information problems. Both PearlPay and Gomodo are technology optimists. Only technology, with its ability to provide orders of magnitude of improvement in capability and affordability, has the scale to confront problems such as poverty and the other overriding concerns of society today. PearlPay believes that the power of technology can make the world a better place and improve people’s lives.


Author PearlPay

PearlPay is a company that strives to improve financial inclusion in the country. We have the initiative to make financial services universally accessible, creating a network of rural banks connected to major payment networks and remittance centers both inside and outside the country.

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