Green Financing Ecosystem for MSMEs: Supply and Demand Perspectives

Today, Bank Indonesia just launched the study “Green Financing Ecosystem for MSMEs: Supply and Demand Perspectives”, in collaboration with the Research and Training Unit for Economics and Business, Universitas Gadjah Mada . The study is part of the ongoing push to help MSMEs transition toward truly sustainable business practices by making financing more accessible.

The limited availability of green financing products for MSMEs remains one of the main challenges in driving the green transformation. In the meantime, many MSMEs have been getting support through non-financing programs from financial and non-financial institutions (grants, mentoring, and technical assistance) which have been quite helpful. On the demand side, they’re looking for funding to buy eco-friendly equipment, help to get green certifications, and better access to markets.

To fill those gaps, the study suggests the “ECOLAB” model, a collaborative ecosystem that connects MSMEs with financial institutions, aggregators, accelerators, incubators, and offtakers. This collaboration is strengthened through training programs, financing incentives, partnerships with communities and government, as well as the development of shared production facility-based financing schemes to reduce costs.

Congratulations to the Bank Indonesia team, especially Ibu Anastuty Kusumowardhani (Nita) & Pak Heru Rahadyan, PhD, and the UGM team led by Ibu Widya Paramita (safe flight, Mbak hehe).

Anyway, this is the shorter version (125 pages or chapter I-II, instead of 350), due to the size capacity.  Let me know if you want the rest.

Source:

https://www.linkedin.com/posts/akmalabudimanmaulana_study-on-the-green-financing-ecosystem-for-ugcPost-7359483474589749251-m8lQ/?utm_source=share&utm_medium=member_desktop&rcm=ACoAAAtGGkQBsxwMBmX3lEJO8btihnfBCaHqTz4