"MSMEs had a number of business sectors in 2021, which reached 64.19 million, and contributed up to 61.07 percent or Rp 8,574 trillion to the GDP," he noted in Jakarta on Monday.
MSMEs are supporting Indonesia's GDP because the government has taken several measures to encourage their progress, including through the implementation of Law Number 11 of 2020 concerning Job Creation, he explained.
The government is also providing financing to them through people's business loans (KUR), with a ceiling of Rp373.17 trillion in 2022. Next year, the KUR ceiling will be increased to Rp470 trillion.
While the proportion of MSME loans to total new loans currently stands at 18.4 percent, the proportion of MSME loans will be increased to 30 percent by 2024 under the direction of President Joko Widodo.
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Then, through Presidential Instruction Number 4 of 2022, President Joko Widodo has also mandated ministries/institutions (K/L) and local governments to take steps to accelerate the elimination of extreme poverty.
"This is being done by carrying out collaborative partnerships for extreme poverty eradication programs with stakeholders outside the government," Hartarto said.
The Coordinating Ministry for Economic Affairs has also signed a memorandum of understanding with the Indonesian Chamber of Commerce and Industry (Kadin) regarding the “Multi-Stakeholder Partnership for the Acceleration of the Elimination of Extreme Poverty.”
The partnership will make it easier for regions to identify, plan, and pilot measures so that they can produce data related to the Acceleration of the Elimination of Extreme Poverty (P3KE).
The P3KE data will be used as a reference for setting the targets of the corporate social responsibility (CSR) program or the Social and Environmental Responsibility (TJSL) program aimed at alleviating extreme poverty around a company's location.
The implementation of the CSR program is currently supported by the preparation of the revised Government Regulation Number 47 of 2021 concerning limited liability company TJSL.
The regulation regulates CSR around a company's location, within a certain radius that is calculated by the government, with a minimum projection of being in the same district/city as the company's location.
"Through this system, Kadin can implement it with existing pilots and according to the President's direction so that it can be replicated," Hartarto said.
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Translator: Astrid F, Azis Kurmala
Editor: Suharto
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