Bank Indonesia Strengthens UMKM and Pesantren to Boost People's Economy

Bank Indonesia (BI) has initiated a comprehensive program to transform Micro, Small, and Medium Enterprises (UMKM) and Islamic boarding schools (pesantren). This initiative is designed to bolster the Indonesian economy and generate employment opportunities, particularly in the face of global economic volatility.

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In a situation of high uncertainty, we must become more independent. What happens globally, we have to move on.

BI Governor Perry Warjiyo stated that the program is a commitment from BI, the government, and strategic partners to foster economic growth through integrated entrepreneurship training and enhanced UMKM independence. This effort is crucial given the current global uncertainties, including conflicts and trade disputes, which necessitate greater national self-reliance.

The program recognizes the significant potential of UMKM, which form the backbone of Indonesia's economy with over 65 million businesses. Despite many being small-scale, they are major job creators. Empowering UMKM is seen as vital for national development, aligning with the government's Medium-Term Development Plan (RPJM) and President Prabowo Subianto's 'Asta Cita' program focused on the people's economy.

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Advancing UMKM means driving growth and creating jobs, improving families' welfare, and also passing on to our generations.

BI, through its 46 representative offices, supports over 3,000 UMKM and more than 1,500 pesantren nationwide. The transformation program includes a 2-2.5 month entrepreneurship education phase, covering technical knowledge and business skills, followed by certification and apprenticeship trials. This structured approach aims to help these businesses "move up a class" and become more competitive.

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So, why is this program important, one, because the global is turbulent, we can't rely on the global, let's strengthen our own strengths. Two, UMKM are truly important pillars for growth, welfare, then encouragement for future generations. Three, let's make this program an important part of Asta Cita for the people's economy.