Indonesian small business plan hatched by People’s Bank & Ministry of Investment
JAKARTA, INDONESIA – The People’s Bank of Indonesia (BRI) is stepping up its efforts to grow the number of micro, small, and medium enterprises (MSMEs) in Indonesia. The bank, which has around 30 million retail clients across 4000 branches, has agreed to work with Indonesia’s Ministry of Investment to streamline the process for registering an Indonesian small business.
Key to the partnership will be the integration of data from the Ministry of Investment’s Online Single Submission platform into BRI’s apps, channels, and other financial services. The aim is to ensure a quick and simple process for MSMEs to set up their legal and financial needs.
BRI Institutional Relations Director, Agus Noorsanto, explains that this partnership manifested from BRI’s efforts to further develop Indonesia’s MSME sector and facilitate easy access to necessary services for entrepreneurs.
“MSME entrepreneurs no longer need to be worried. After registering their business on the OSS and receiving their NIB document, they can use BRI’s financial services, such as opening a bank account or apply for a loan, without any complicated application processes,” said Noorsanto.
What is Online Single Submission?
Online Single Submission (known as OSS) is a web-based app owned by the Ministry of Investment which allows new MSME owners to register their business and apply for a business license. Through this application, an entrepreneur can quickly obtain the required documents for commercial activity such as the Business Identification Number (NIB), Company Registration Certificate, Import Permit, and other commercial and operational permits.
The integration of OSS data within BRI’s business banking and financing operations will remove the need for the bank to run laborious background checks when assessing new clients and financing applications. There is also likely to be further future cooperation and integration of data between the two institutions.
Ultimately we could see a situation in which MSMEs may not need any legal documents or complex verification processes when applying for a bank loan from BRI.
This is not the first time BRI has shown its willingness to help further boost the MSMEs industry in Indonesia. They already are providing entrepreneurs with easy and affordable access to their financial services through their nine thousand branches and hundreds of thousands of agents spread across the country.
The BRI and the Ministry of Investment announced this latest partnership and co-signed a memorandum of understanding last Friday (7 May 2021).