//Why Tokoin choose Indonesia

Why Tokoin choose Indonesia

Indonesia is one of the countries in Southeast Asia which has huge untapped MSME potential. The Ministry of Communication and Information Technology states that Indonesia has 59.2 million people currently running MSMEs. The increased number of MSMEs each year has raised the ‘ease of doing business’ indicator and boosted Indonesia’s position from the 120th to 72nd between 2015 and 2018 according to the World Bank’s rating. The number of Indonesian MSMEs that are operating independently keeps growing persistently each year, even when there is neither access to credit finance nor governmental support. Despite the multiplied number, in 2015, only 27.4% of Indonesian firms had a bank loan or a credit line, and only 12.8% of business investment was financed by bank loans.However, many external factors have hindered MSMEs from living up to their potential. For instance, their small-scale operations are vulnerable to deterioration in highly competitive business environment where the economies of scale in large production provide a competitive advantage. Moreover, they face difficulties in gaining support from governmental institutions, and this results in high costs of borrowing and, consequently, few resources to draw on during struggling times. To make matters worse, MSME-related issues regarding collateral and alignment with international financial standards complicate lending applications. As a result, established financial institutions have less experience in lending to small businesses and often negatively perceive this to be a more complicated investment than what it ought to be.Website: www.tokoin.ioTokoin #MSME #Blockchain #Crypto #cryptotrading #BTC #EmergingMarkets #Ecommerce #retail

Indonesia is one of the countries in Southeast Asia which has huge untapped MSME potential. The Ministry of Communication and Information Technology states that Indonesia has 59.2 million people currently running MSMEs. The increased number of MSMEs each year has raised the ‘ease of doing business’ indicator and boosted Indonesia’s position from the 120th to 72nd between 2015 and 2018 according to the World Bank’s rating. The number of Indonesian MSMEs that are operating independently keeps growing persistently each year, even when there is neither access to credit finance nor governmental support. Despite the multiplied number, in 2015, only 27.4% of Indonesian firms had a bank loan or a credit line, and only 12.8% of business investment was financed by bank loans.

However, many external factors have hindered MSMEs from living up to their potential. For instance, their small-scale operations are vulnerable to deterioration in highly competitive business environment where the economies of scale in large production provide a competitive advantage. Moreover, they face difficulties in gaining support from governmental institutions, and this results in high costs of borrowing and, consequently, few resources to draw on during struggling times. To make matters worse, MSME-related issues regarding collateral and alignment with international financial standards complicate lending applications. As a result, established financial institutions have less experience in lending to small businesses and often negatively perceive this to be a more complicated investment than what it ought to be.

Website: www.tokoin.io

Tokoin #MSME #Blockchain #Crypto #cryptotrading #BTC #EmergingMarkets #Ecommerce #retail