The Times Australia
News From Asia

.
The Times Real Estate

.

CPA Australia: Most Indonesian small businesses expect to grow in 2023

  • The vast majority of small businesses expect to grow in 2023.
  • Almost one-quarter embracing green and sustainable finance opportunities.
  • Accessing external finance remains a challenge for businesses.

    JAKARTA, INDONESIA - Media OutReach - 2 May 2023 - Eighty-four per cent of Indonesian small businesses expect to grow in 2023, the second highest result for the Asia-Pacific region, a new survey shows.



    CPA Australia's Asia-Pacific Small Business Survey reveals that Indonesian small businesses remained among the most positive across Asia-Pacific in 2022. The survey covered responses from 4280 small business owners or managers across 11 Asia-Pacific markets, including 306 from Indonesia. Seventy-seven per cent reported growing in 2022 and 32 per cent hired more employees. This year is expected to be even stronger with more than four-in-10 planning to hire more staff.

    Dr Adi Budiarso FCPA (Aust.), Chairman of CPA Australia's Indonesia Advisory Committee said micro, small and medium enterprises (MSMEs) were resilient amid global uncertainty. Dr Budiarso is Director of the Financial Sector Policy Centre at Indonesia's Ministry of Finance.While 48 per cent of Indonesian small businesses said COVID-19 was a major challenge, this was a drop from 72 per cent in 2021.

    "Indonesia is home to more than 64 million MSMEs, creating a significant number of jobs and contributing to the economy. Although the pandemic still casts a shadow over Indonesia, its impact is diminishing. The lifting of travel restrictions has helped Indonesian small businesses perform, by boosting the tourism industry and private consumption."

    Sixty-seven per cent of businesses said technology investments made last year improved their profitability. The adoption of online tools is also prevalent. Social media is used by seven-in-10 to promote their business and 61 per cent use it to communicate with customers.

    "The government's National Economic Recovery Program and the Proud of Indonesian Products Movement has contributed to technology adoption across Indonesia's MSMEs. The pandemic prompted businesses to embrace technology and adapt. Indonesian businesses have a strong focus on improving customer satisfaction, becoming sophisticated at using social media to stay connected."

    Sixty-five per cent of businesses received more than 10 per cent of sales through digital payment. This was lower than the survey average of 74 per cent.

    "With digital payment options closely associated with high growth businesses, we hope more Indonesian small businesses will offer such payment options."

    While most of Indonesia's small businesses are growing, many found accessing external finance difficult. Among the 73 per cent that sought funds last year, 39 per cent found it difficult. This was higher than the survey average of 33 per cent. In spite of this, intentions to access finance remain strong, with 89 per cent planning to seek external funds this year.

    "Accessing financing is still challenging to many in developing economies including Indonesia. The pandemic may have exacerbated difficulties due to cashflow problems."

    "The government has been trying to improve financial inclusion. For example, increasing access to finance through digital platforms, encouraging financing through People's Business Credit (KUR) and Ultra Micro (UMi) Financing programs and offering mentoring. MSMEs should also try to improve their solvency as this may impact their future credit score. They must keep a close eye on cashflow and costs."

    The survey findings reveal that many Indonesian small businesses have spent time and resources on environmental, social and governance (ESG) practices. Twenty-four per cent monitored their energy and water use and 23 per cent adopted green and sustainable finance opportunities.

    "MSMEs are crucial contributors to achieving Indonesia's climate and clean energy goals. Indonesia has established a comprehensive framework for sustainable finance to meet these goals and MSMEs should consider applying this to their business."

    Hashtag: #CPAAustralia #SME #Business #Economics

    The issuer is solely responsible for the content of this announcement.

    About CPA Australia

    CPA Australia is one of the largest professional accounting bodies in the world, with more than 172,000 members in over 100 countries and regions, including more than 21,000 members in South-East Asia. Our Indonesian office, located in Jakarta, opened in 2011. Our core services include education, training, technical support and advocacy. CPA Australia provides thought leadership on local, national and international issues affecting the accounting profession and public interest. We engage with governments, regulators and industries to advocate policies that stimulate sustainable economic growth and have positive business and public outcomes. Find out more at

The Times Features

Itinerary to Maximize Your Two-Week Adventure in Vietnam and Cambodia

Two weeks may not seem like much, but it’s just the right time for travelers to explore the best of Vietnam and Cambodia. From the bustling streets of Hanoi to the magnificent te...

How to Protect Your Garden Trees from Wind Damage in Australia

In Australia's expansive landscape, garden trees hold noteworthy significance. They not only enhance the aesthetic appeal of our homes but also play an integral role in the local...

Brisbane Homeowners Warned: Non-Compliant Flexible Hoses Pose High Flood Risk

As a homeowner in Brisbane, when you think of the potential for flood damage to your home, you probably think of weather events. But you should know that there may be a tickin...

Argan Oil-Infused Moroccanoil Shampoo: Nourish and Revitalize Your Hair

Are you ready to transform your hair from dull and lifeless to vibrant and full of life? Look no further than the luxurious embrace of Argan Oil-Infused Moroccanoil Shampoo! In a...

Building A Strong Foundation For Any Structure

Building a home or commercial building can be very exciting. The possibilities are endless and the future is interesting. You can always change aspects of the building to meet the ...

The Role of a Family Dentist: Why Every Household Needs One

source A family dentist isn’t like your regular dentist who may specialise in a particular age group and whom you visit only when something goes wrong. A family dentist takes proa...

Times Magazine

"Eternal Nurture" by Cara Barilla: A Timeless Collection of Wisdom and Healing

Renowned Sydney-born author and educator Cara Barilla has released her latest book, Eternal Nurture, a profound collection of inspirational quotes designed to support mindfulness, emotional healing, and personal growth. With a deep commitment to ...

How AI-Driven SEO Enhancements Can Improve Headless CMS Content Visibility

Whereas SEO (search engine optimization) is critical in the digital landscape for making connections to content, much of it is still done manually keyword research, metatags, final tweaks at publication requiring a human element that takes extensiv...

Crypto Expert John Fenga Reveals How Blockchain is Revolutionising Charity

One of the most persistent challenges in the charity sector is trust. Donors often wonder whether their contributions are being used effectively or if overhead costs consume a significant portion. Traditional fundraising methods can be opaque, with...

Navigating Parenting Arrangements in Australia: A Legal Guide for Parents

Understanding Parenting Arrangements in Australia. Child custody disputes are often one of the most emotionally charged aspects of separation or divorce. Parents naturally want what is best for their children, but the legal process of determining ...

Blocky Adventures: A Minecraft Movie Celebration for Your Wrist

The Minecraft movie is almost here—and it’s time to get excited! With the film set to hit theaters on April 4, 2025, fans have a brand-new reason to celebrate. To honor the upcoming blockbuster, watchfaces.co has released a special Minecraft-inspir...

The Ultimate Guide to Apple Watch Faces & Trending Wallpapers

In today’s digital world, personalization is everything. Your smartwatch isn’t just a timepiece—it’s an extension of your style. Thanks to innovative third-party developers, customizing your Apple Watch has reached new heights with stunning designs...

LayBy Shopping