QRIS: Financial Technology (FinTech) Solution for Economic Growth in

Micro-Small and Medium Enterprises (MSMEs)

Ririn Nababan, Jesica Ivana Sirait, Rido Rivael Hasibuan
Universitas Sumatera Utara

ABSTRACT

This paper examines the pivotal role of Micro-Small and Medium Enterprises
(MSMEs) in fueling Indonesia's economic growth, comprising a staggering 99% of
all business entities and contributing 60.5% to the Gross Domestic Product (GDP),
alongside providing employment opportunities for 96.9% of the national workforce.
Considering this, the study underscores the pressing need to leverage Financial
Technology (FinTech), especially concerning MSMEs. Drawing from a 2021 report
by the Indonesian FinTech Association (AFTECH), it reveals that 62% of financial
technology providers have concentrated their efforts on micro, small, and medium
enterprises (MSMEs) as their primary target market. Within this segment, 42% of
FinTech firms have reported transaction values exceeding Rp80 billion. However,
the proliferation of FinTech products and services has introduced challenges related
to the effective management of funds acquired from the exchange of goods and
services for MSMEs. To address these challenges, Bank Indonesia has introduced
the Quick Response Code Indonesian Standard (QRIS) as a FinTech solution
tailored to enhance both its accessibility and management. The impact of QRIS on
MSMEs has been overwhelmingly positive. QRIS enables the acceptance of
payments from a diverse range of FinTech applications through QR code scanning,
making it widely accessible for transactions across Indonesia. Importantly, QRIS
adheres to robust security standards, as it is a product of Bank Indonesia, with
verified security protocols. This research underscores the symbiotic relationship
between MSMEs and FinTech, emphasizing the pivotal role of qualitative research
with a descriptive approach in exploring this dynamic. The study illuminates the
growing significance of FinTech in advancing the growth and sustainability of
MSMEs while highlighting the challenges faced in the effective management of
their financial resources. The introduction of QRIS by Bank Indonesia emerges as
a tangible solution to ease the adoption of FinTech among MSMEs, aligning with
the broader goal of enhancing their financial management capabilities and
consequently contributing to the economic development of the nation.

Key Words : MSMEs, FinTech, QRIS, Bank Indonesia