The world is currently facing a recession, high inflation, and declining economic growth
Jakarta (ANTARA) - Head of the Presidential Staff Office (KSP) Moeldoko has expressed optimism that micro, small, and medium enterprises (MSMEs) will be able to fully recover amid pressures presented by the pandemic and the Russia-Ukraine geopolitical conflict.

"An Asian Development Bank (ADB) survey reported that around 48.6 percent of Indonesian MSMEs closed due to the pandemic impact. We have experienced crises and recessions in 1998, 2008, and this year, but one thing that remains exists, namely MSMEs," Moeldoko said in a statement released on Friday.

According to him, due to the presence of MSMEs, Indonesia's economy has continued to grow even though the world is currently facing uncertainties. MSMEs have played an essential role in supporting the country's economic resilience.

"The world is currently facing a recession, high inflation, and declining economic growth. However, we must be proud of the spirit of MSMEs,” he said at the Info Franchise and Business Concept Expo (IFBC) in Tangerang, Banten.

He further noted that MSMEs can drive the economy in regions and maximize the use of local raw materials. In addition, they can create labor-intensive jobs.

Moeldoko pointed out that based on national data in 2021, MSMEs, whose number reached 65.4 million, were able to absorb 97 percent of workers in Indonesia.

"The President is very aware that MSMEs are the backbone of the national economy. Therefore, I hope that events like IFBC will not only become exhibitions and promotional opportunities but also provide educational programs, business consulting, and literacy for entrepreneurs," he said.

The government is supporting the growth of MSMEs through various efforts, for example, increasing the share of MSME credit from 20 percent in 2022 to 30 percent in 2024, he added.

In addition, the government has formed a state-owned enterprise (SOE) holding for ultra-micro financing, provided credit under a super-micro People's Business Credit (KUR) scheme, and subsidized KUR interest to three percent until December 2022, he informed.

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Translator: Indra Arief, Raka Adji
Editor: Sri Haryati
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