Although the economic system is open, the founding fathers of Indonesia agreed that the people's economy must be the basis of the nation’s economy, he added.
"We are not against the big one. When I introspect about BUMN that are considered ivory towers and it is true, SOEs actually become sharp nails that kill entrepreneurs. That is where I unpacked how BUMN must build a win-win ecosystem (beneficial to both parties) with private entrepreneurs, especially SME (small and medium enterprise) entrepreneurs and friendly countries, whether from Japan, China, or Korea," he said at Sarinah Building, Jakarta, on Monday.
Therefore, the minister said that since the beginning of the COVID-19 pandemic, he has continued to invite state-owned enterprises and entrepreneurs to help micro, small, and medium enterprises (MSMEs) by providing funding, assistance, and market access.
This is evident from the opening of 7.1 million job opportunities in villages through the Mekaar PNM program (Building a Prosperous Family Economy) for providing special services to underprivileged women who want to start a business or develop a business.
In fact, at the same time, many people in urban areas are returning home due to the loss of jobs, he said.
“The opening of 7.1 million jobs is due to the Mekaar PNM program carried out by women in the villages with only a loan of Rp1–4 million, and the congestion rate is only 0.13 percent. Can you imagine if, in urban areas, they release workers, (and) in the villages there are no jobs? Where is the Indonesian economy going?” he asked.
As another effort to strengthen the people's economy, the government is also pushing for an extension of economic restructuring until 2023 through the People's Business Credit (KUR) subsidy of up to 13 percent, with KUR interest paid to debtors pegged at 3 percent.
If a good business ecosystem is built, Indonesia can become the center of global economic growth, reaching an average economic growth of 5 percent per year in 2045.
“There is an ecosystem improvement that must be spawned by Hippindo (Indonesian Shopping Center Retailers and Tenants Association), Apindo (Indonesian Entrepreneurs Association), and others. We have to encourage big (businesses), but the foundation of Indonesia's economy, which is based on a people's economy, must be the foundation of choice," he said.
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Translator: M Baqir, Azis Kurmala
Editor: Rahmad Nasution
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