While inaugurating me (as the Investment Minister), the President (Joko Widodo) asked me to not only take care of large investments, but also small ones.
Jakarta (ANTARA) - Investment Minister Bahlil Lahadalia distributed business identification numbers (NIBs) to 550 individual micro and small enterprise (MSE) players in Medan city, Binjai city, and Deli Serdang district of North Sumatra province on Thursday.

"While inaugurating me (as the Investment Minister), the President (Joko Widodo) asked me to not only take care of large investments, but also small ones,” he remarked at the NIB distribution event in Medan city on Thursday.

Throughout Indonesia’s history, micro, small, and medium enterprises (MSMEs) have been the ones who have always kept encouraging the development of the national economy, even in the midst of crises, such as the 1998 monetary crisis. He noted.

In fact, small businesses contribute up to 61 percent of the national gross domestic product (GDP) and absorb a significant number of domestic workers, he added.

However, no more than 50 percent of the 64 million MSMEs in Indonesia are formal business units and the rest do not have business permits, he pointed out.

Hence, the utilization of bank credit by small businesses is less than 20 percent since banks do not provide credit to any business without a license, he said.

Related news: Investment Ministry to distribute NIBs to individual MSEs in Medan

Hence, the government has continued to encourage MSME players to obtain licenses through the risk-based Online Single Submission (OSS) system, which is free of charge and quick, so they can get funding from banks.

The minister said he expects that by obtaining a permit, small business actors would be able to utilize the smallholder business credit (KUR). In 2022, the amount of KUR disbursed reached Rp373 trillion (US$24.77 billion).

"The attempt aims to make our MSMEs to become the foundation of the national economy," he remarked.

According to data from the Investment Ministry, as of 9 a.m. Western Indonesian Standard Time (WIB, UTC+7) on July 20, 2022, at least 1,552,994 NIBs have been successfully issued through the OSS system.

Around 98 percent of the total NIBs have been provided to SMEs, while the rest have been issued to medium and large businesses.

Furthermore, out of the total NIBs issued, 48,752 have been issued to business players in North Sumatra province.

Previously, the ministry conducted NIB handing-over events in Jakarta and Surakarta city (Central Java province). The activity will be organized in 17 other cities/districts of Indonesia.

Related news: Jokowi targets daily issuance of 100 thousand NIB for MSMEs
Related news: MSMEs must utilize online marketplaces to boost sales: Widodo

Translator: Ade Junida, Uyu Liman
Editor: Suharto
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