OJK Calls on Foreign Banks to Provide SMEs with Trade Financing

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  • A logo of the Financial Services Authority (OJK). TEMPO/Tony Hartawan

    A logo of the Financial Services Authority (OJK). TEMPO/Tony Hartawan

    TEMPO.CO, Jakarta - Financial Services Authority (OJK) chairman Muliaman Hadad has called on foreign banks in Indonesia to focus on providing trade financing for small and medium enterprises (SME).

    “They have wide networks overseas,” Muliaman said in Jakarta on Wednesday, April 5, 2017.

    Muliaman viewed that foreign banks have better capacity in terms of technology to facilitate financing for SMEs.

    Ilham Akbar Habibi, president of the International Chambers of Commerce (ICC) Indonesia, said that digitalization would speed up transactions and save time for communication and filling out forms. Ilham added that digitalization would also reduce the need of human resources.

    As a result, Ilham added, cost would be more effective and service and security would be more improved.

    “However, with benefits comes hindrances,” Ilham said.

    Ilham explained that digitalization would open opportunities for cybercrimes. Irresponsible people with access to certain technology could use data in illegal manners.

    However, Ilham called on public not to reject the advancement.

    “We can gain huge added value from the structural change,” he said.