Jakarta (ANTARA) - State-owned Enterprises Minister Erick Thohir instructed directors of state-owned companies to help develop local small and medium enterprises (SMEs) to bolster national economic growth.

"We must have a common commitment. We must not pursue a contract with SMEs, yet we cannot ensure prompt payment (to them). I often heard complaints about this, (they said) that the products have been sent, but they are not receiving the (contract) payment yet," Thohir stated during the "Proud of Indonesia-made Products' Affirmative Action to Purchase and Use Domestic Products" event observed here on Monday.

Respecting contracts with SMEs is indispensable for state-owned enterprises, Thohir remarked while appealing to directors of state companies to implement the instruction to help SMEs properly.

The ministry had launched a digital market for MSMEs on August 17, 2020, to follow up on the ministerial decision that instructed the involvement of MSMEs in project tenders, with a value below Rp400 million (US$27.6 thousand), he noted.

Thohir remarked that two years after the launch, the digital market is currently hosting a total of 15 thousand MSMEs, with a total transaction value having reached Rp20 trillion (US$1.38 billion).

The minister emphasized that at a time when instability looms large over the global economy, state-owned enterprises, as the drivers of the national economy, must play their role in maintaining economic growth and helping to reduce inflations.

"I urge directors to pay heed to my instructions properly, as this is consistent with the president's instruction. My apology because the instruction that is clear is that I will replace directors, who are not committing themselves to this duty," Thohir remarked.

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Translator: Sugiharto P, Nabil Ihsan
Editor: Sri Haryati
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