President prioritizing economic stimulus for MSMEs

President prioritizing economic stimulus for MSMEs

Illustration: Minister of Cooperatives and Small and Medium Enterprises (UKM), Teten Masduki (second right), speaks with traders during a visit to the furniture market in Solo, Central Java on February 2, 2020. (Antara Foto/ Mohammad Ayudha /aww)

And, it was agreed that there would be a new loan (scheme floated) for MSMEs that are currently having trouble making payments
Jakarta (ANTARA) - President Joko Widodo is giving priority to economic stimulus for micro, small, and medium enterprises (MSMEs), which contribute 60 percent of the gross domestic product (GDP) and employ 97 percent of the people.

"Based on the President's instruction, economic stimulus is (being) prioritized for MSMEs because this sector contributes to 60 percent of the GDP and employs up to 97 percent (of the total population),” said Minister of Cooperatives and SMEs, Teten Masduki, on Wednesday in Jakarta.

The stimulus policy is directed at MSMEs because 99 percent of business operators in Indonesia are engaged in the MSME sector, and the majority of such enterprises are micro businesses.

Therefore, Teten noted, President Joko Widodo has requested that the MSME loan restructuring program be expanded.

"The interest installment relief is also being given not only to micro credit program recipients, but also the recipients of loans under Rp10 million, through savings and loan cooperatives and others," Masduki informed.

President Joko Widodo has also requested that micro businesses be included in the list of direct cash assistance (BLT) recipients.

“And, it was agreed that there would be a new loan (scheme floated) for MSMEs that are currently having trouble making payments," Teten Masduki remarked.

President Joko Widodo, he continued, has also requested that a tax write-off program be implemented for MSMEs.

Meanwhile, a social security program and a basic food card program have also been integrated with traditional food stalls serving as food suppliers.

“Now social assistance is pouring out to the public, so that it can increase purchasing power," the minister stated. (INE)

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