Since its establishment in 2014, Bank Indonesia (BI) of West Papua has functioned as a strategic partner of the regional government. BI has performed numerous policies and campaigns regarding financial matters and economic growth in this region. One of the most prominent examples is conducting mentoring programs for the development of MSMEs (Micro, Small, and Medium Enterprises).
What is the Role of Bank Indonesia in West Papua?
Bank Indonesia (BI) has maintained a long relationship with the regional government of West Papua through its representative regional office. The following are several BI significant roles in the social and economic development in this land:
- Monitoring and maintaining the inflation rate and price stability
- Promoting local economic growth by ensuring safe, efficient, and reliable cash and non-cash payment systems
- Encouraging the well-running coordination between regional monetary, fiscal, and real sector functions
- Maintaining the stability of the regional financial system
- Controlling the payment system
- Strengthening the role of the Regional Inflation Control Team (TPID)
- Acting as advisory roles to the regional government through BI Regional Economic and Financial Reviews
- Supporting the regional development of MSMEs
What is the role of Bank Indonesia in the Development of MSMEs in West Papua?
BI has encouraged the growth of MSMEs in West Papua through its mentoring programs. The bank has accompanied the regional micro, small, medium enterprises even from the start. The scopes BI has helped and supported are, among others:
- The improvement of regional MSMEs competence (human resources)
- The improved production processes
- The standardization of product packaging
- Financial management
- Management of product licensing
- The market expansion
What are Bank Indonesia Efforts to Encourage the Development of MSMEs in West Papua?
Below, you will read three examples of BI practices to nourish the spirit and development of MSMEs among the indigenous people in West Papua.
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A Training – Entrepreneurship and Competitiveness of MSMEs
The Representative Office of Bank Indonesia in West Papua (BI Pabar) conducted a 3-day training to targeted MSMEs. This activity is one of BI efforts in supporting the improved competitiveness of MSMEs, particularly given the recent pandemic situation.
The series of training activities (14, 22, and 29 April 2021) involved 23 members of three MSMEs assisted by BI Pabar. They are UMKM Abon Ikan Laut Miareto of Sorong City, UMKM Sari Pala Danaweria of Fakfak, and UMKM Keripik Sukun Efata Manggoapi of Manokwari.
BI Pabar organized the activity through digital media meetings, following the social-physical distancing government exhortation. The training began with materials on entrepreneurial followed by managing MSMEs financial statements and making a simple financial statement (bookkeeping).
Also, the training introduced the what-so-called “SI APIK” (Financial Information Recording Application System) through a tutorial video of using this application. BI develops this “SI APIK” application system as a tool for MSMEs to monitor their business financial state.
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Onboarding UMKM Papua Barat – Education, Facilitation, and Motivational Sessions
It is one of BI real contributions to the development of MSMEs in West Papua, especially responding to the rapid acceleration and expansion of the digitalization era. The title of the activity was “Onboarding UMKM Papua Barat: Edukasi, Fasilitasi, dan Motivasional Session”.
The participants of this 2-day activity (6-7 April 2021) were 30 MSMEs assisted by Bank Indonesia, the Office of Industry, Trade, Cooperatives and MSMEs (of West Papua Province and Manokwari Regency), Bank Mandiri, and the Regional office of the National Craft Council of West Papua (Dekranasda).
This activity connects the West Papua MSMEs with the digital ecosystem through e-commerce by bringing Blibli.com as a facilitative resource person. Blibli.com is one of the marketplaces committing to developing the MSMEs through its submenu of Galeri Indonesia and the #BanggaBuatanIndonesia movement.
Bli-bli.com shared different marketplace complexities and sales strategies so that MSMEs can optimize their digital sales. The digital era opens up wider marketing opportunities for MSMEs by the emergence of a wide range of e-commerce. The conversational commerce and marketplaces allow MSMEs to sell products that can reach out to various regions in and outside Indonesia.
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A Local Wisdom – Noken Handicraft Training
BI of West Papua, along with the provincial Regional National Craft Council (Dekranasda), organized training of noken spinning tools that intended especially for the Papuan Mama MSMEs in Manokwari.
On 4 December 2012, UNESCO acknowledged and classified noken as one of the world’s cultural heritage. Noken falls into Category 1, which means it is a cultural heritage that needs urgent protection and preservation.
The purpose of noken spinning tool training is to support and encourage regional economic growth based on local wisdom by establishing sustainable, innovative, and resilient local MSMEs.
The Nirudaya Nusantara Foundation guided the training for four groups of Papuan Mama noken craftsmen. They were the Enago noken group, the Noken weaving creation business group, the Genemo noken group, and the Arfak noken group. Each group sent four representatives. Four students of Papua University also participated in the training activity.
Bank Indonesia of West Papua has attempted various activities to promote the development of MSMEs in this land. Mowing forward, BI recently has conducted several programs in line with the acceleration and expansion of digitalization demands.
