BRI Digitalization Makes It Easier for Women to Access Entrepreneurial Finance – 15 minutes ago

Jakarta, CNBC Indonesia – PT Bank Rakyat Indonesia (Persero) Tbk through the Mekaar initiative (Fostering a Prosperous Family Economy) also contributed to the level literacy and women's financial inclusion in Indonesia. Through that initiative, Lots Indonesian women succeed gain access to finance to build a businesshis.

It is known that in 2022 the financial literacy rate of women will reach 50.33% while men will reach 49.05%. Meanwhile, for the level of financial inclusion, women will be at 83.88% in 2022 or only a difference of no more than 3% compared to men who reach 86.28%.

BRI President Director Sunarso revealed that Mekaar has been successfully building a foundation for financial inclusion by utilizing BRI's digital resources. Where Mekaar develops a non-ecosystemcash by disbursing the loan to a savings account.

“This program has succeeded in collecting 10 million new savings accounts in just two years, increasing the economic resilience of group members, and enabling them to have financial data that will provide a pathway to greater financing as their business grows,” said Sunarso as quoted from quoted from weforum.orgWednesday (17/1/2024).

For your information, Mekaar, which is operated under the microfinance institution PT Permodalan Nasional Madani (PNM), is dedicated to female borrowers. Sunarso explained that group loans are still the most common and most successful method for channeling financing to underprivileged women in rural communities.

The characteristics of the group loan model are that it builds social capital and relies on social security from the collective responsibility of members.

Based on a BRI Research Institute survey in 2023, as many as 60.85% of Mekaar borrowers were able to increase their income and 48.35% of them experienced an increase in assets after receiving financing.

They are also able to improve family welfare by meeting basic household needs, including food, education, access to electricity, and asset ownership

“Mekaar also facilitates access to raw materials, expands distribution channels, and introduces digital platforms to members through empowerment initiatives. Apart from that, this program instills in members increased self-confidence and decision-making capacity,” he explained.

Sunarso did not deny that Mekaar still has many challenges. This is because data from the Coordinating Ministry for Human Development and Culture shows that there are 27.1 million underprivileged women of productive age in Indonesia.

In fact, based on a study conducted by McKinsey & Company, gender equality in Indonesia has the potential to contribute around US$135 billion to gross domestic product (GDP) in 2030.

“This is a big incentive for Indonesia to get out of the trap of a middle-income country because these millions of women will close the gaps in financial inclusion, income and gender,” concluded Sunarso.

[Gambas:Video CNBC]

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