Accelerating Financial Inclusion, Ultra Micro Holdings Are Considered Capable of Creating Artificial Intelligence Technology
Ultra Micro Holdings (UMi) are considered to be able to provide artificial intelligence (AI)-based technology
IDXChannel – (12/8/2021) Ultra Micro Holding (UMi) is seen to be able to provide artificial intelligence (AI)-based technology as part of data integration efforts, to expand and improve the ease of access to services to the public, thereby accelerating national financial inclusion.
This was stated by the Chairman of the Trade Division of the Indonesian Employers’ Association (Apindo) Benny Soetrisno. He saw that at the level of UMi business players, the main problem faced in business development was access to financing distribution and coaching.
He assessed that the problem could be overcome by the synergy between PT Bank Rakyat Indonesia (Persero) Tbk., PT Pegadaian (Persero) and PT Permodalan Nasional Madani (Persero) or PNM through holdings, by integrating AI-based data processing.
The reason is, these three state companies have had experience across the landscape of empowering the underprivileged businesses with data that is believed to be qualified. In addition, BRI as the holding company has strong financial fundamentals and can provide capital to provide AI-based technology.
“They (in holdings) can push that. Actually, the needs of micro players are only templates, so that a kind of model can be made that will make it easier. It can be a digital system that is made advanced by AI.” Benny said.
Benny’s view is not just a baseless opinion. He saw that at the level of UMI business players, the issue of financing distribution did not depend on interest rates. According to him, business players at the lower level are able to bear high interest rates, as long as access to financing can be done quickly without burdensome requirements.
This happens in the practice of loan sharks who charge high interest on easy terms. He also gave an example in that currently there are still many formal financial institutions that require collateral so that financing can be ‘liquid’. In fact, according to him, collateral is very inappropriate for loans with small ticket sizes.
With the synergy of the three state-owned companies, the holding entity will be able to provide simple AI-based applications that can help digital bookkeeping to determine the performance quality of UMi business players.
So collateral obligations can be changed to billing guarantees that are recorded and can be easily tracked by the holding members through the AI-based system. It will provide strong transparency.
Benny also emphasized that the use of AI is only as a complement to strengthening data integration. In practice, he still hopes that the UMi network or holding agents at the lower level must continue to prioritize more intensive empowerment and assistance functions in the field.
“If there is indeed an employee on duty in the area or at the market, he must know all of them. This will also encourage micro players to slowly switch to formal financial institutions. Moneylenders are rampant because they know each other closely.” he added.
Meanwhile, Chairman of the Indonesian Chamber of Commerce and Industry, Arsjad Rasjid, said the UMi holding would accelerate financial inclusion, thereby spurring the growth of the new entrepreneur population in Indonesia.
This is inseparable from the experience of the three SOEs involved in holding, which have focused on empowerment and financing for small communities.
“Establishment of an ecosystem (through a holding entity) to accelerate financial inclusion and reach those who have not been served by loans. Currently, many business actors in the micro and ultra micro segments have not been exposed to formal financial services. For example, for capital loans to expand and strengthen the business.” Arsjad said.
Similarly, BUMN observer from the Faculty of Economics and Business, Universitas Indonesia (FEB UI) Toto Pranoto said that the UMi holding was expected to accelerate the pace of financial inclusion and sustainable financing. The synergy of the ultra micro ecosystem through holding is inseparable from the government’s program to support the vision of empowering the business segment.
Toto also reminded that the purpose of this holding is to create greater value creation in empowering UMi, micro and small businesses. The reason is that value creation in this case means that the holding value is much greater than that of each SOE when it was independent.
The holding entity concept can accelerate the government’s hope in targeting around 57 million ultra-micro customers, of which 30 million are not yet accessed by formal financial institution funding sources. This ecosystem will provide a more complete product service and potentially cheaper funding for around 29 million ultra-micro businesses by 2024.
“The target is to have wider access to financing for the micro segment, so that the financing coverage of this sector is targeted at up to 29 million micro businesses by 2024. It is also hoped that in the process of fostering and improving the business capability, these businesses can be supported by the micro holding entity concept.” he added.
Source: https://www.idxchannel.com/economics/percepat-inclusion-keuangan-holding-ultra-mikro-diharga-capable-created-technology-kecerdasan-buatan
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