A link and match between MSMEs and SOEs must be developed immediately
Jakarta (ANTARA) - House of Representatives' Commission VI member Nevi Zuairina suggested the government to build collaboration between State-owned Enterprises (SOEs) and Micro, Small, and Medium Enterprises (MSMEs) to boost digitalization of MSMEs to drive Indonesia's economic growth.

"A link and match between MSMEs and SOEs must be developed immediately," Zuairina noted in a written statement obtained here on Saturday.

Zuairina suggested that the State Budget should not solely be allocated to SOEs but the government should also channel attention to the MSMEs ecosystem for allotment since the sector also helped to maintain the nation's economic growth and development.

The House member called on the government to strengthen the digitization of MSMEs and encourage them to prepare for the international market.

"Moreover, during this COVID-19 pandemic, we must accelerate business processes and mechanisms in order to survive and show progression," Zuairina remarked.

One of the signs of progress was greater acceptability of the products of commodities manufactured by domestic producers in the international market, she pointed out.

To this end, Zuairina pushed to strengthen the digitization of MSMEs based on centralized data.

She believes that information technology and supporting infrastructure, such as a competitive delivery service, will offer wider business opportunities without limitations on location and time.

"The current pandemic is not only altering the people's lifestyle but is also presenting a strong warning of a decline in the number of MSME players, which were earlier valued at Rp64.7 million in 2019, though fell drastically to 34 million business actors in 2020," Zuairina stated.

Earlier, Minister of State Enterprises Erick Thohir noted that MSMEs and SOEs were the backbones of the Indonesian economy.

"MSMEs and SOEs are the backbones of this country's economy," Thohir noted as quoted from his Instagram account @erickthohir on Friday 13.

Thohir remarked that transforming SOEs into global business players was one of his key tasks as minister of SOEs.

However, it is a shared task of all stakeholders to transform MSMEs, which are people-owned enterprises, to become stronger, more resilient, and more competitive.

SOEs will continue to make all-out efforts, so that all public services, infrastructure development, energy availability, telecommunication access, and business financing for Indonesians can be achieved optimally.

The initiative to involve MSMEs as partners in the industrial supply chain as well as the procurement of goods and services for SOEs is a tangible form of sustainable synergy, Thohir remarked.

Related news: Digitalization of MSMEs to facilitate economic recovery: VP
Related news: Tourism Ministry supports digital wallets for MSMEs' digitalization
Related news: Indonesia's economic recovery moving in right direction: SOE Minister

Translator: M Rahman, Resinta S
Editor: Sri Haryati
Copyright © ANTARA 2021