KEIN confident of SMEs supporting economic growth of seven percent

KEIN confident of SMEs supporting economic growth of seven percent

Deputy Chairman of KEIN Arief Budimado

Jakarta (ANTARA) - The National Committee for Economy and Industry (KEIN) reckons that Small- and Medium-Scale Enterprises (SMEs) can boost economic growth by seven percent, as the revenue of SMEs can be increased by 30 percent.

"We should give serious attention to SMEs. Indonesia's economic growth can exceed seven percent if we drive the revenue of SMEs by 30 percent," Deputy Chairman of KEIN Arief Budiman stated in Jakarta on Monday

Budiman noted that micro and small entrepreneurs currently reach some 63 million, divided into 62 million micro entrepreneurs and 750 thousand small entrepreneurs. If the entrepreneurs are upgraded, Indonesia will be able to overcome the five percent stagnation.

"SMEs  contribute 60 percent to Indonesia's gross domestic product (GDP), but banking access only reaches 20 percent. They will be upgraded, if they are offered more access," he noted.

Access to capital and the market is deemed necessary to boost revenue. In the meantime, greater SMEs involvement in investment and export activities is required.

Moreover, large companies are not allowed to seize the market of SMEs.

"SMEs have a very large market. There are two main problems in the form of market and capital access. If we hard work, the economic growth will reach seven percent," he noted.

Moreover, Budiman's teams are also proposing a revision of the tax value for SME players. The limit on the taxable object should be applied to help SMEs.

"The association must propose that revenue of up to Rp1.1 billion for small and micro entrepreneurs is not subjected to tax. Hence, we have a proper administrative mechanism in place," he explained.

Budiman noted that the increase of SMEs' capacity can boost the income of households, reduce poverty, and narrow gaps.  

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