Expanding capital access for entrepreneurs by partnering with three alternative financing institutions, namely Bizhare, ALAMI Fintek Sharia, and LBS Crowdfunding, is part of an effort to grow and upgrade MSMEs in Indonesia.

Jakarta (Indonesia Window) – The Indonesian Ministry of Micro, Small, and Medium Enterprises (MSMEs) is expanding capital access for entrepreneurs by partnering with three alternative financing institutions, namely Bizhare, ALAMI Fintek Sharia, and LBS Crowdfunding.

The Deputy Minister of MSMEs, Helvi Moraza, stated that this step is part of an effort to grow and upgrade MSMEs in Indonesia, the Ministry of MSMEs said in a written statement on its website, as quoted by Indonesia Window on Thursday.

"We are opening the door to innovative, inclusive and adaptive financing schemes," Helvi Moraza said at the Entrepreneur Hub Innovative Financing 2025 event, held in Jakarta on Wednesday (Aug 20).

The collaboration with the financing institutions was realized through the signing of a cooperation agreement between the Ministry of MSMEs and the three alternative financing institutions - LBS Crowdfunding, ALAMI Fintek Sharia, and Bizhare.

The financing institution are based on securities crowdfunding (SCF), a fundraising method or scheme that allows business owners to obtain capital by inviting the public or small investors to participate in their projects or businesses.

Through an online platform, business owners offer investments in various forms of financing instruments, such as stocks, sukuk (lomg-term securities with Islamic principle), or other investment instruments, to a small group of interested individuals.

Furthermore, Deputy Minister Helvi explained that this step is a solution to a classic challenge, as currently, more than 60 percent of MSME entrepreneurs still rely on their own capital or informal financing.

Meanwhile, the portion of MSME credit in banks is only around 20-22 percent.

"Many entrepreneurs, especially those who are unbankable, stall before they can grow, not because they lack ideas, but because they lack access to capital,"  Helvi noted.

Therefore, according to him, this innovation goes beyond providing capital alone to developing other visions and missions, particularly in building trust, improving financial literacy, and fostering a healthy, inclusive, and sustainable entrepreneurial ecosystem.

Bizhare's Chief Technology Officer, Giovanni Umboh, stated that the Entrepreneur Hub Finance event is very beneficial in expanding financing for MSMEs.

He claims to be able to provide alternative funding of up to 10 billion rupiahs for potential MSMEs.

"We hope that MSMEs will continue to build their businesses on a larger scale, so that more quality MSMEs can receive funding. This will drive Indonesia's economic growth," Giovanni Umboh pointed out.

Meanwhile, LBS Crowdfunding Business Director, Murdani Aji, stated that this collaboration can provide an alternative financing solution for MSMEs.

"Funding is not only from the banking sector but also through investors spread throughout Indonesia," Murdani Aji explained.

Director of ALAMI Fintek Syaria, Adi Jayadianto, also said that the collaboration with the Ministry of MSMEs can connect his company with MSMEs in different regions across Indonesia.

"We hope to support MSMEs in continuing to grow and move up in class," Adi Jayadianto said.

Bakmi Naga restaurant owner Henry, who received 1.971 billion rupiahs in funding from Bizhare, said that after securing this funding, he is determined to increase the capacity of his business.

*1 U.S. dollar = 16.328 rupiahs

"I think this is great, because by facilitating crowdfunding for funding, more people with good businesses can grow even faster," Henry said.

Reporting by Indonesia Window