Insurance and QRIS Become Important Capital for MSMEs to Reach the Online Market

Business protection is an important capital to increase the business of MSME actors to upgrade. This is to mitigate unexpected risks for the development of MSMEs. Member of Commission XI of the House of Representatives from the Golkar Faction Mukhamad Misbakhun fully supports the DPR's proposal to pass the Draft Law on the Development and Strengthening of the Financial Sector (RUU PPSK) which until now is still in draft. This is intended to advance protection for MSME actors. "Through this PPSK Bill, of course, it is very clear that we are siding with MSMEs, we, especially in the Golkar Party, are eager to fight for these MSMEs to get affirmations in many policies, so the state affirmation is not only in terms of budget but also affirmations in terms of policies because the budget can be temporary but policies will be permanent," he said in a webinar entitled MSMEs Goes To Digital Market, Thursday (8/9/2022).

Furthermore, Misbakhun explained that including policy affirmations at the level of this law is a serious effort where later there will be the role of all state stakeholders, be it the government, and then there is the role of the fiscal and monetary sectors. Where from the monetary side, there will be Bank Indonesia, whose role has been very proven to be able to provide adequate environmental impact for MSMEs so that they can move up in class to become one of the pillars of economic progress. "In the PPSK law, we want the financial sector to be one of the main factors in supporting the progress of the economy and MSMEs where in this bill and finance will discuss comprehensively and broadly related to the details of strengthening the financial sector," he said.

Then, he added, the regulation of protection and supervision of financial technology or fintech, will be systematically integrated and one of the financial media that can be accessed by small and ultra-micro businesses and the wider community. "In the PPSK law, we will fight for our points of thought that we will fight for we will convey to the people that their interests we will take care of and how we want to present affirmations of state policies for the community at large structured and then have a significant impact on our national economy," he added.

President Director of BRI Insurance Fankar Umran revealed that there are still many MSMEs that have not protected their business or carried out risk management for their business. In fact, according to Sankar, MSMEs are individual business that is still vulnerable to bankruptcy and difficult to rise if unexpected things happen. According to him, this is still often forgotten by all business actors or even becomes something that is ruled out. "So far, MSMEs are recognized as always talking about two things, namely about accompanying and providing credit support for business and convenience, then the second pillar is about financing, then capital financing from banks, now from here something is forgotten and will be conveyed, namely about protection," he said.

He said that protection in the business world needs to be done because if the business is without protection, MSMEs tend to fall more easily, so it is necessary to protect against risks, both asset protection, and protection from the risk of fraud. "If it's this risk without protection they're going to fall. This is important for risk protection, one example of the risk of Jenkins there is the risk of assets and the risk of mispaid transactions, etc., being exposed to fraud or fraud can be protected with insurance," explained Sankar.

He continued, that there are still many large entrepreneurs who override business risk management because some of the entrepreneurs themselves also rule out this matter. In fact, according to him, insurance is the main thing about the financial structure of MSMEs. So it can be said that having insurance is very important. In addition, several things that must be considered by entrepreneurs in carrying out risk management, especially in terms of asset protection such as disasters and accidents. These two things are single risks and often also escape the eyes of entrepreneurs, making them unsustainable.

Sankar then likened the businessman involved in the accident, many asked their family for help, maybe the closest family of them could help, but not all businessmen could also help their families. In addition, it is also impossible for entrepreneurs to immediately easily get financial loans from financial institutions such as banks they will think for the umpteenth time to assist. "Yes, it's so it's hard to help," he added. Sankar added that during the Covid-19 pandemic, it has been recorded that around 80 percent of MSMEs have increased financial adaptation and digitization.

"Well, a lot of insurance from here has increased for MSMEs and they have also been open to insurance products, but only 1 percent of MSMEs are aware of general insurance, while 17 percent of them already have micro-insurance," he explained. Similarly, Head of SMB (Small and Medium-sized Businesses) TikTok Indonesia Pandu Nitiseputro said that TikTok can currently be used by MSMEs to be able to sell with a more entertaining and educational experience through the TikTok Shop. "MSMEs can also make fun offers, and live streams or live broadcasts can also be an option which is in line with the introduction of digital-based MSMEs," explained Pandu.

Pandu revealed that there have been many MSMEs who have done this. The video can also make it easier to shop, and can check out in the application without moving around.