Jakarta | In line with the commitment of the Financial Services Authority (OJK) to boost the capital market industry through go public initiatives, OJK will encourage the establishment of a rating agency for micro, small, and medium enterprises (MSMEs) in the future.
The establishment of this rating agency aims to reduce irrelevant information related to MSME funding.
According to Firdaus Djaelani, Executive Head of the Non-Bank Financial Industry (IKNB) Supervisor at OJK, such ratings are crucial for facing the ASEAN Economic Community (AEC) era, which will increase competition in MSME financing.
The purpose of implementing these ratings is to provide a common language that leads to a standardized credit pattern offered to MSMEs, which, in turn, can enhance financing for the MSME sector.
“The benefits of this rating will include offering insights to MSMEs regarding their weaknesses and shortcomings, as well as serving as a complement to the internal ratings already conducted by banks,” he said in Jakarta recently.
OJK has coordinated intensively with the Indonesian Association of Guarantee Companies (Asippindo) and Bank Indonesia (BI), resulting in a preliminary study on the urgency of establishing an MSME rating agency and concrete steps for its formation.
Additionally, OJK will coordinate with the Ministry of Law and Human Rights, the Ministry of Cooperatives and SMEs, and the Indonesian Notary Association regarding the legalization of the legal entities of MSME financial institutions. Coordination will also include ministries/agencies that have development programs or foster groups, such as the Ministry of Maritime Affairs and Fisheries (KUB) and the Indonesian BMT Association.
“We will coordinate with Asippindo to conduct focus group discussions (FGDs) on the MSME rating agency involving academics and stakeholders, including local governments and relevant ministries, targeted for completion by the end of 2015. The formation of the MSME rating agency itself is expected to be completed in 2016,” he explained.
(neraca.co.id)