Funding Societies | Modalku Supports the Role of MSMEs in Green Economy Implementation

Funding Societies Supports the Role of MSMEs in Green Economy Implementation

Jakarta, May 11th – 12th, 2022 – The Green Economy Indonesia Summit 2022 is an initiative to showcase the nation’s commitment towards a more inclusive green economy. The first day of the summit saw a collective voice from a number of governmental institutions showing their commitment towards a more sustainable future. Supporting this agenda, Warta Ekonomi’s subsidiary, Quadrant 1 Komunika, coordinated the important event, titled The Future Economy of Indonesia, which was hosted in a hybrid format; offline at the Bidakara Hotel, Jakarta and online through Zoom and streamed live on Warta Ekonomi’s Youtube Channel. 

Represented by Annette Aprilana, Funding Societies | Modalku was also present during the summit as a financing platform for MSMEs who have an interest in the green economy. In addition to the institutional and regulator players in the larger ecosystem, Funding Societies | Modalku, backed by Softbank and Sequoia amongst others, plays a significant part to support Micro, Small & Medium Enterprises (MSMEs) that are also contributing to a green economy – as one of the backbones of the region’s developing economy, MSMEs have an important role to support the transition. In her speech during the second day of the Summit, Funding Societies | Modalku’s Sustainability & ESG Lead said that MSMEs have an important role to play to support a green and inclusive economy. The challenge still remains for MSMEs to get access to funding from traditional financial institutions, which is why a FinTech platform like Modalku can support underbanked and underserved MSMEs in the transition to a green economy.

Indonesia has 64 million MSMEs which contribute 62% to GDP. In addition, MSMEs are also proven to be able to absorb 97% of the workforce. From these data, we can conclude how big the impact will be if MSMEs are able to transform and implement a green economy. Currently, the role of MSMEs has begun to be seen through 3 patterns, namely:

  1. New Innovation, such as through the use of plastic alternatives to make products like straws, forks, bags, and packaging using materials like seaweed or cassava
  2. Impact Sector, companies in the field of waste management and waste supply chains, which are tackling environmental problems 
  3. New Business Model, for example through a circular business model by providing household products by refilling a customer’s existing bottle as opposed to purchasing new bottles or sachets.

In addition to opening access to more inclusive funding for MSMEs, Funding Societies | Modalku has also begun to raise awareness in encouraging MSMEs to be conscious of sustainability.

“We have seen globally and nationally that the banking sector has played an active role in contributing to a green economy. In the same spirit, FinTech platforms can also start to raise awareness and encourage MSMEs to consider sustainable practices and initiatives,” said Annette.

Besides Funding Societies | Modalku, the 2-day event was also attended by various stakeholders, from the private sector to the government. Starting from the Coordinating Minister for the Economy of the Republic of Indonesia, Airlangga Hartanto, to other ministers. Namely, the Minister of Energy and Mineral Resources of the Republic of Indonesia Arifin Tasrif; the Minister of Environment & Forestry of the Republic of Indonesia, Siti Nurbaya; Minister of National Development Planning/Head of Bappenas RI, Suharso Monoarfa; Indonesian Minister of Industry, Agus Gumiwang Kartasasmita; Minister of Public Works & Public Housing of the Republic of Indonesia, Mochamad Basuki Hadimuljono; Minister of Tourism & Creative Economy, Sandiaga Uno.

On the second day, the event was kicked-off by an opening speech from Muhammad Ihsan, CEO of Warta Ekonomi and a keynote speech from Teten Masduki, Minister of Cooperatives and MSMEs. Also present were the Expert Staff for Macroeconomics at the Ministry of Investment/BKPM, Indra Darmawan.

Apart from the government, this event was also enlivened by representatives from other industry players such as Gema Goeryadi, Founder & CEO of PT Astronacci International; Vera Eve Lim, Director of Finance of Bank BCA and Fransiska Oei, Compliance, Corporate Affairs & Legal Director of Bank CIMB Niaga, and many others.


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