Once there was a pandemic, the number of MSMEs delving in the digital space rose rapidly, from eight million business players to no less than 19 million MSMEsJakarta (ANTARA) - Micro, Small, and Medium Enterprises (MSMEs) have salvaged the economy like heroes in all crises, according to Cooperatives and SMEs Minister Teten Masduki.
“MSMEs are not just a bumper. MSMEs have played a role as a dynamist for economic recovery," he affirmed during an activity at the Army Headquarters, here on Tuesday.
The minister noted that MSME actors were courageous in facing a crisis, unlike big businesses that held back investment and waited for the economic situation to improve. MSMEs were still going strong in the midst of a crisis, so he dubbed them as heroes in terms of their role in salvaging the economy.
Related news: Digitalization can ensuresustainability of women, youth-run MSMEs
MSMEs were said to have succeeded in conducting digital transformation to e-commerce at the start of the COVID-19 pandemic crisis, so their number in the digital space increased by more than 100 percent.
"Once there was a pandemic, the number of MSMEs delving in the digital space rose rapidly, from eight million business players to no less than 19 million MSMEs," he pointed out.
The pandemic was deemed to have led to new innovations from MSME players, such as in the frozen food category from the culinary sector and various health service products.
He stated that MSME players should be given more access to bank credit, as they still dominated the economy, at 99.9 percent, and created as much as 97 percent of job employments. Based on the data, the share of bank credit for MSMEs was still capped at 19.8 percent.
Related news: 2022 GPDRR as platform to showcase Bali MSMEs globally: Minister
"You can imagine is our MSMEs are like in South Korea, wherein there are already so much bank loans for MSMEs. As for us, just 19.8 percent of (the credit enabled them to contribute) 97 percent of the employment and contribute to 61 percent of the gross domestic product, (let alone more,)" he remarked.
Thus, the government was currently pushing for a change in perspective on the economic potential of MSMEs.
"This means that we do not only think of MSMEs as a bumper, a subsistence economy, or an economy for household needs," he concluded.
Related news: Collaboration vital for MSME digital transformation: minister
Related news: Tourism Ministry initiates digital tourism village in Setu Babakan
Translator: M Baqir I A, Mecca Yumna
Editor: Fardah Assegaf
Copyright © ANTARA 2022
