PEOPLE'S CELEBRATION BY MANDALA FINANCE
A Celebration of Empowering SMEs in Indonesia Through Strategic Financial Solutions
In celebration of its 26th anniversary and the growth of Small and Medium-sized Enterprises (SMEs) in Indonesia, Mandala Finance hosted the "Perhelatan Rakyat" (People's Celebration) to show real support for the role of local businesses in the economy and society. Recently held on September 2, 2023, the Perhelatan Rakyat event successfully took place in Tomohon and Bandar Lampung, with the participation of thousands of visitors and dozens of SMEs, reflecting the spirit of SMEs in celebrating their resilience amid the most challenging modern health crisis humanity has ever faced.
The trends of globalization and digitalization have ushered in a new era of business dynamics, transcending geographical boundaries and reshaping the economic landscape. Business activities that were once concentrated in major cities have now extended to small towns, villages, and remote areas. This shift can proactively contribute to the development of the local economy and be a positive step towards building a more inclusive and sustainable economy nationwide.
Indonesia has seen significant and stable growth in the development of SMEs, with the number of SMEs reaching 8.71 million units by the end of 2022. This growth is marked by the increasing number and contribution of SMEs to various sectors of the Indonesian economy, not only on the island of Java but also beyond. This is evident from the increasing number of SMEs in other islands, with average figures such as Sulawesi (550,000 SMEs), Sumatra (1,895,000 SMEs), and Kalimantan (158,000 SMEs).
However, despite this positive growth, it is acknowledged that the SME sector in Indonesia is not immune to significant challenges. Some of the issues faced by SMEs include difficulty in obtaining sufficient and sustainable funding to support business development. Moreover, the majority of them also struggle to market their products and services, given the increasingly competitive market. Currently, many small businesses in Indonesia are growing, but many are struggling to access funding, with about 74% of SMEs in Indonesia lacking access to credit or financing from official financial institutions.
Christel Lasmana, Managing Director of Mandala Finance, stated, "Access to financing remains a challenge for many developing countries, including Indonesia. This pandemic may still have lingering effects that are making us all still in the process of recovering from the challenges in terms of business cash flow. This should be taken very seriously because effective cash flow management is a key factor in determining business sustainability."
Through the Perhelatan Rakyat event, Mandala is committed to supporting SMEs in Indonesia with easy-to-access alternative financing, which is essential to drive economic growth and development in Indonesia.
"An approach that involves many aspects and perspectives is crucial to address the diverse needs of SMEs, especially in smaller towns. By combining financial literacy in business, community support through Perhelatan Rakyat, strategic partnerships, and innovative financing solutions, Mandala can contribute to creating a conducive environment for the growth and success of SMEs wherever they are," added Christel.
The public's enthusiasm for the Perhelatan Rakyat event has greatly increased, making Mandala even more ambitious in bringing this festive celebration to the people. In its second year, the Perhelatan Rakyat event, which runs until October 2023, will visit 16 cities, with a total target participation of 90,000 people. The involvement and enthusiasm of SMEs in the visited cities are evident in the increased participation in this year's Perhelatan Rakyat event. Nearly 250 SMEs in 16 cities across Indonesia are expected to participate as bazaar exhibitors.#THE S MEDIA #Media Milenial #Empowering SMEs #Mandala Finance #Perhelatan Rakyat #Local Businesses #Indonesian Economy #Financial Solutions #SME Growth #Financial Challenges #Economic Development #Community Support