Hence, the potential for entrepreneurs to get KUR is still large, and this can also be used for the agricultural sector that is offered a ceiling of Rp90 trillionJakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto is optimistic of entrepreneurs working together and actively contributing to creating a conducive business climate to support Indonesia's economic growth.
"I hope that through the National Conference of National Entrepreneurs Network (Japnas), entrepreneurs would be able to play an active role in creating a conducive business climate as well as work together to support Indonesia's economic growth," Hartarto noted at the 2022 National Conference of National Entrepreneurs Network (Japnas) in a statement here on Friday.
The minister affirmed that entrepreneurs should continue to create innovations in their business by making the most of advancements in digital technology and big data in order to increase competitiveness and stay ahead in a competitive world.
Hartarto emphasized that strong collaboration between the government and businesspersons was deemed necessary to address various economic challenges in future, including synergies with local governments (Pemda), to encourage regional economic development, in particular, to accelerate commodity downstreaming.
The minister stated that one of the forms of support of the government for the business world was the distribution of people's business loans (KUR), with a target of Rp373 trillion this year.
"Hence, the potential for entrepreneurs to get KUR is still large, and this can also be used for the agricultural sector that is offered a ceiling of Rp90 trillion. Next year, the KUR target will be increased again to Rp460 trillion," Hartarto remarked.
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The minister elaborated that in the long term, the government would continue to ensure the implementation of structural reforms in an effort to encourage competitiveness and improve the business climate in Indonesia through the Job Creation Law and the implementation of an integrated electronic business licensing service system (OSS RBA).
In addition, this year, the government is continuing to implement the National Economic Recovery (PEN) Program, amounting to Rp455.6 trillion, with focus on supporting business activities as well as formulating a strategy for transitioning economic activity from the pandemic to endemic phase.
Hartarto is optimistic about Indonesia's economic prospects in future and reflected the current achievements in the form of economic growth that reached 5.44 percent yoy in the second quarter of 2022 and the Purchasing Manager's Index (PMI) that was at an expansive level for 11 consecutive months, while in July 2022, it was recorded worth 51.3.
Indonesia's trade balance recorded a surplus for 27 consecutive months, and during the January-July 2022 period, the figure had reached US$29.1 billion, or double the surplus recorded during the corresponding period last year.
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In addition, the quality of economic growth has been accompanied by an improvement in the level of community welfare by decreasing the poverty rate, from 10.19 percent in September 2020 to 9.54 percent in March 2022.
The unemployment rate decreased, from 7.1 percent in August 2020 to 5.8 percent in February 2022.
In addition, Indonesia's rice trade balance still recorded a surplus, and during the January-September 2022 period, rice production is estimated to reach 26.45 million tons and rice consumption to reach 22.72 million tons.
As a result, there is a surplus of 3.73 tons, Hartarto stated.
"We were lauded by the International Rice Research Institute (IRRI) for having achieved self-sufficiency in rice. For food security, the president encourages food diversification, agricultural intensification, and the development of Genetically Modified Organism (GMO) seeds. With good food security, we can concentrate on the energy sector in the future," he remarked.
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Translator: M Heriyanto, Azis Kurmala
Editor: Fardah Assegaf
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