We are optimistic that if the Rp735 trillion is channeled for the MSME (revival) budget, the economy can be reactivated
Jakarta (ANTARA) - Minister of Cooperatives and Small and Medium Enterprises, Teten Masduki, said he is optimistic the government, institutions, and state-owned enterprises budget for micro, small, and medium enterprises (MSMEs) would help boost the national economy. As much as Rp735 trillion of funding has been allocated to the budget, he revealed.

"We are optimistic that if the Rp735 trillion is channeled for the MSME (revival) budget, the economy can be reactivated," the minister said during a discussion on Thursday in Jakarta.

To encourage more MSME activities, he said, his ministry is pushing both supply and demand side growth.

The MSME budget, he continued, makes up a large part of efforts to boost demand for MSME products that can be absorbed by the market.

"We have to maintain (MSMEs) as our market is rather significant with 250 million people (being served by such businesses). If there is commitment among the people to buy from MSMEs, it will increase the demand for (products made by) MSMEs,” he said.

At present, the ministry is preparing a digital catalog and a page specifically for MSMEs with the help of the Government Institution for Provisions of Goods and Services (LKPP).

"Along with the LKPP, we are carrying out trainings and formulating packages on the provision of MSME products in the e-catalog," he informed.

Furthermore, the ministry has granted relaxations on MSME loans through installment delays, credit subsidy, tax amnesty, and provisions for new, more affordable capital for MSMEs to ensure their productivity is maintained.

"There are around 60.66 million MSMEs that have been connected with funding, banking institutions. We have opened the doors as wide as possible for MSME players that have yet to be connected to funding (sources), so they can immediately propose funding schemes to institutions and be included in the relaxed program with low interest (schemes),” he explained.

Meanwhile, MSMEs that can no longer operate their businesses will be included in the ministry’s social assistance program.

"They are mostly from the ultra micro (segment), we have included them in the social assistance program," he said. (INE)

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Translator: Zubi Mahrofi/Aria Cindyara
Editor: Fardah Assegaf
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