Indonesia has a large number of Micro, Small, and Medium-Sized Enterprises (MSMEs) that are vital to the nation's economic growth. According to the Ministry of Cooperatives and Small and Medium Enterprises, there will be 64,2 million MSMEs in Indonesia in 2020. Nonetheless, MSMEs continue to face various obstacles, particularly in access to financing and digital transformation. To encourage the growth of micro, small, and medium-sized enterprises, the Indonesian government has set a goal of achieving financial inclusion by 2024, emphasizing empowering MSMEs.
Access to financing is a challenge for small and medium-sized enterprises, particularly in remote areas with limited access to financial services. People's Credit Banks (BPRs) are crucial in providing rural MSMEs with financial services. BPRs need help digitizing their services and implementing modern technologies to support the expansion of MSMEs' businesses.
VIDA, a trusted digital identity provider, has integrated its digital signature service, VIDA Sign, and online identity verification service, VIDA Verify, into the OpenBank+ system to support BPRs in the digital transformation of their services, enabling BPRs to provide secure and efficient online financial services. This integration has allowed over 800,000 customers per month, including MSMEs, to access online banking services, such as financing.
In the era of digital fraud, VIDA's digital identity technology ensures customer confidence, which is crucial. By implementing VIDA's digital signature service and online identity verification service, BPRs can offer their customers the same level of security as traditional banks, thereby making online financial services more accessible to MSMEs in remote areas.
With its Speed, Scale, Secure, and Social Impact (4S) principles, VIDA's technology can assist BPRs in expanding their businesses to support MSMEs in rural areas. VIDA aims to be an inclusive high-tech innovation service that benefits various parties, including industry participants, the government, and the general public. The 'Tumbuh Tangguh' (Resilient Growth) initiative of VIDA supports the government's digital transformation agenda in Indonesia, fostering the growth of MSMEs and promoting financial inclusion for all.
Integrating VIDA's digital identity technology into the OpenBank+ system is a component of the government's Go-Digital BPR and BPRS program, which aims to digitize the services of BPRs to support the business growth and financial inclusion of MSMEs. This program is anticipated to facilitate more accessible access to financing for SMBs, thereby enhancing their productivity and competitiveness.
Focusing on the empowerment of MSMEs, the Indonesian government has set a goal of increasing financial inclusion from 76.19 percent in 2020 to 90 percent in 2024. The digitalization of BPR services is one strategy for achieving this objective. As of December 2020, the Financial Services Authority (OJK) reported that the number of BPRs in Indonesia had reached 2,942. By digitizing BPR services, the government hopes to expand access to financial services, particularly for those living in remote areas.
Incorporating VIDA's digital identity technology into the OpenBank+ system is a major step toward supporting the digitalization of BPR services and achieving the government's financial inclusion goal by 2024. VIDA's contribution to promoting financial inclusion and empowering MSMEs in Indonesia is invaluable, given that it offers compliant, secure, and efficient digital identity solutions. Through initiatives such as the Go-Digital BPR and BPRS program, which is supported by VIDA's digital identity technology, we anticipate substantial business growth for MSMEs, which will contribute to the economic growth of Indonesia as a whole. Adopt digitalization and join us on this transformational journey to empower MSMEs and advance financial inclusion in the nation.
