It is an opportunity for you (MSMEs actors) to expand your business, to make (more) economic contribution to our beloved country.
Jakarta (ANTARA) - President Joko Widodo (Jokowi) pointed to the fact that Rp185 trillion (US$12.27 billion) of smallholder business credit (KUR) was unutilized in 2022 despite the government having subsidized the interest rate for KUR by 13 percent.

“If it is not subsidized, then the interest rate reaches 16 percent,” the president noted at the handing of Single Business Number/Business Identification Number (NIB) for individual Micro and Small Enterprises (MSEs) Actors here Wednesday.

He remarked that total budget for the implementation of KUR in 2022 had reached Rp373 trillion (US$24.75 billion), though only 49 percent of the funding had been realized.

Hence, he invited micro, small, and medium enterprises (MSMEs) players to optimize the utilization of KUR since the interest was subsidized to be only three percent, as it was provided from the National Economic Recovery (PEN) fund.

The president also urged MSME actors, who participated in the event, to invite their fellow MSME players to register their NIB.

"Thus, if they (the MSME actors) want to take credit at the bank, it (the application) will be easy (to be processed). (In addition), if there is MSME assistance from the government, it will not be difficult to identify them," he emphasized.

He stated that the NIB application process is free of charge.

Related news: Assistance on product quality must follow KUR distribution: Minister

"It (NIB) is the main key for us to run our businesses, (then having business) permission is a must,” he emphasized.

He noted that 65.4 million MSMEs across Indonesia in 2021 contributed 61 percent to the national gross domestic product (GDP), and they absorbed 97 percent of the workforce.

“It needs to be noted, sorry, Mr. Arsjad (Arsjad Rasjid, Chairperson of the Indonesian Chamber of Commerce and Industry), it is not big companies (who absorb the workers more), but MSMEs,” he remarked.

Jokowi stated that despite the current difficult situation, Indonesia's economy was able to grow quite well, reaching 5.01 percent in the first quarter of 2022, while the inflation is still under control.

"It is an opportunity for you (MSMEs actors) to expand your business to make (more) economic contribution to our beloved country," he affirmed.

Related news: President invites MSEs to capitalize on low interest of KUR

Translator: Desca Natalia, Uyu Liman
Editor: Rahmad Nasution
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