As one of the contributions of Universitas Indonesia (UI) to Sustainable Development Goals (SDGs) 8 Decent Work and Economic Growth, SDG 10 Reduce Inequalities, dan SDG 17 Partnerships for the Goals,the Faculty of Administrative Sciences (FIA) UI supported Terasmitra in developing a financing inclusion strategy for partners spread across Sumatra, Greater Jakarta, Central Java, Yogyakarta, Bali, East Nusa Tenggara, Kalimantan, and Gorontalo. This strategy was outlined in the form of a closed financing application, namely TM Fund, which was developed by Media Cipta Informasi with funding support from the Global Environment Facility–Small Grant Programs (GEF SGP). “FIA UI initiated an evidence-based development strategy by conducting studies on the needs and financing profiles of Terasmitra partners. Based on the results of this study, FIA UI and Terasmitra in collaboration with Media Cipta Informatika developed a closed application for distributing Terasmitra funds to partners in need.
Over the past year, the application program and its management have been tested in private with very satisfactory results,” said Dean of FIA UI Prof. Chandra Wijaya at TM Fund Application Launching Ceremony on Monday (1/11). Prof. Chandra also emphasized that TM Fund answered the challenges of financial inclusion in Indonesia including geographical, infrastructure, and human resource challenges. “The efforts to moderate this challenge are through digitalization facilities. This is a very appropriate solution in the midst of bustling online loans in our country. With this application, in the future, partners from Terasmitra will continue to develop so that people with weak economies, especially micro and small businesses, can access and develop. This will also increase the Gross Domestic Product (GDP) and reduce unemployment in Indonesia,” said Prof Chandra.
Meanwhile, Director of the Environmental Business Development Foundation Yani Witjaksono said that, “Institutions and good governance are two strategic issues that need to be developed by TM Fund to improve its performance in the future. A clear division between the management of TM Fund and Terasmitra organization and the availability of skilled and professional personnel is the key to the success of TM Fund in becoming a solution for its partners. This initiative is very good, needs to be supported, and is a smart effort to solve the partners’ problems.”
Terasmitra is a social entrepreneur that embraces local communities in various provinces in Indonesia. One of the obstacles faced by local communities is the finance to make efficient production, marketing and distribution of goods & services so that they can meet the needs of the global market and the domestic market. So far, the obstacles faced by the community are because of no network, no financial access, and no market access which underlies the need for a microfinance system that will be created to help finance the community/partners and can help Terasmitra transform into a Social Finance Institution.
The benefits expected in this TM Fund are indirect environmental protection because the financing application is used to help communities engaged in environmental protection businesses. In addition, natural balance (ecological, biological) due to financing applications is used to help communities engaged in the business for natural balance. Then the economic benefits for the sustainability of community businesses are helped by the provided finance. The next benefit is the welfare of the community, which is increasing the welfare of the community because it absorbs labor with the sustainability of community businesses that are assisted by the provided finance.
