He held a dialogue with several spice traders in the traditional market to accrue information on the impact of digitization on the turnover of traders.
"Online presence is exceedingly reflected on the turnover of one of the traders that can reach between Rp50 million and Rp200 million a month, with more than 50 percent of (the trading activities being conducted) online," he stated.
This was confirmed by a kitchen spice seller named Siska, who claimed she could generate a turnover of up to Rp2.5 million per day and even Rp6 million during the New Year period solely from online sales.
Furthermore, Hartarto remarked that through online sales, the market's customers had exceeded the radius of the Palmerah area to the Tangerang area. These clienteles are also repeat customers, such as restaurants, which means that traditional markets now have their own captive market.
"That is what the government is pushing for onboarding MSMEs, such as Grab Mart, is highly supported. Moreover, by entering the application, trade is recorded and sales are recorded, thereby making it easier for banks to provide KURM (credits for small traders)," he remarked.
On the occasion, several traders also submitted requests for credit assistance to Coordinating Minister Airlangga Hartarto to increase capital and expand business, especially ahead of the Ramadan fasting month and Islamic Holiday Eid.
The minister affirmed that the government through banks, including BNI, provided a People's Business Credit (KUR), with a three-percent interest subsidy, until December 2022, with a ceiling of up to Rp100 million without collateral.
"BNI has given KUR symbolically, starting from Rp50 million to Rp250 million and interest rate at three percent, while the traders we met had never received credit. This is the first time they have used credit,” Hartarto stated.
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Translator: Kuntum KR, Fardah
Editor: Sri Haryati
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