It is no longer possible for big entrepreneurs to run alone without involving MSMEs.
Jakarta (ANTARA) - Micro, small, and medium enterprises (MSMEs) have been the chief support of the Indonesian economy in the midst of crises, Investment Minister Bahlil Lahadalia said.

At the 4th G20 side event entitled “Stakeholders Consultation: Small and Medium Enterprises’ (SMEs’) Opportunity in Global Value Chain and Logistics Solution,” on Friday evening, he said that MSMEs also served as saviors of the Indonesian economy during the 1998 economic crisis.

He recalled that during the 1998 crisis, Indonesia's inflation reached 88 percent, which left many businesses unable to operate and forced them into bankruptcy. At the time, only MSMEs managed to survive the crisis and support the national economy.

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Then, at the beginning of the pandemic in 2020, crisis hit Indonesia again as many large companies could no longer optimize their business.

"MSMEs are also the ones who saved Indonesia's national economy (amid the pandemic),” the minister said.

In view of their important role, it is now time that big entrepreneurs and MSMEs support each other, he added.

"It is no longer possible for big entrepreneurs to run alone without involving MSMEs,” he remarked.

Healthy and quality investment can be realized if there is synergy and collaboration between big and small business players, he said.

Therefore, his ministry has formulated a policy to encourage cooperation between business actors.


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So far, there has been no regulation regarding the issue in Indonesia, Lahadalia noted adding that his ministry has adopted it from other G20 countries that have implemented it, such as Japan and South Korea.

"It is time for us to take care of them (MSMEs) and be able to encourage them to advance," he said.

However, there are a number of challenges that will need to be resolved to develop a strong local MSME ecosystem to allow MSMEs to become a part of the global value chain, he added.

He then said that no party must monopolize access to the global economy and stressed on the principle of togetherness to rise and recover from the pandemic.

The minister also emphasized the importance of the digitalization of MSMEs.

"I have confidence that Mr. Teten (Masduki) is a very innovative (and) creative Menkop (Cooperatives and Small and Medium Enterprises Minister) in formulating attempts for SMEs (Small and Medium Enterprises) to go international," he added.



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Translator: Ade Junida, Uyu Liman
Editor: Fardah Assegaf
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