THE Ministry of Tourism and Creative Economy encourages tourism and creative economy players to seek alternative funding from the capital market.

According to the Director of Access to Finance at the Ministry of Tourism and Creative Economy, Hanifah Makarim, in her statement, said it is necessary to introduce another source of financing that is still poorly understood or not well known by entrepreneurs, especially Micro, Small and Medium Enterprises (MSMEs) engaged in the tourism sector and the creative economy.

“That in fact we can get access to other financing by taking the floor on the stock exchange through an IPO scheme or an ‘Initial Public Offering’,” said Hanifah.

She said, currently capital is still one of the big obstacles for business actors in Indonesia. As many as 92.37% of creative economy players only rely on their own capital or loans from their families to help their businesses, because of the difficulty in getting access to loans from financial institutions.

“Only around 24.44% get financing from banks and 0.66% from non-banking financial institutions. We hope that entrepreneurs, especially MSMEs, can share experiences in finding other business models, so that their businesses can develop even better. For that, business actors in the tourism sector and creative economy should not wait big to go public, but be big by going public through the stock exchange,” Hanifah noted.

Hanifah Makarim explained that apart from the city of Surabaya, this Capital Market Discussion activity will then be held in the cities of Bandung, Makassar, Bali and Medan.

After the series of activities is completed, the Ministry of Tourism and Creative Economy will also hold a KreatIPO event, a workshop related to the capital market which is more intensive to prepare parekraf business actors to take the floor on the Indonesia Stock Exchange.

On the same occasion, the Head of the East Java Tourism and Culture Office, Sinarto gave his appreciation to the Ministry of Tourism and Trade for the initiation of holding Capital Market Talk activities. Because this is what MSME players need to gain new knowledge regarding other alternative capital.

“I hope the meeting this time can provide good benefits to develop the business of parekraf players through the Indonesian capital market. So that Indonesian micro, small and medium enterprises (UMKM) players will become classy UMKM,” he added.

Meanwhile, the Head of IDX Incubator Surabaya, Cita Melisa, explained the benefits obtained by parekraf business actors when entering the capital market, including MSME players will get access to funding from the wider community, increased professionalism and employee loyalty, because the company will be owned by the public at large, as well as corporate image can improve.

“From these benefits, business players have the opportunity to open up new opportunities in developing their business,” Cita concluded. [antaranews]