The stipulation of rental rates do not meet Government Regulation Number 7 of 2021, and it is seen that MSME players have yet to form cooperatives in various public infrastructures.
"I expect that through this initiative, an open discussion will follow to optimize the use of promotional space in public infrastructure and can offer solutions to the challenges that will still be faced onwards," deputy for SMEs at the Cooperatives and SMEs Ministry Hanung Harimba noted in an official statement received here on Monday.
The regulation mandates ministries, agencies, regional governments, state- and region-owned enterprises, and private business entities to allocate space for promotion and development of MSMEs. The space must be at least 30 percent of the total land area of commercial areas, shopping areas, and strategic promotion places in public infrastructure.
Strategic promotion places include terminals, airports, seaports, railway stations, rest areas, and toll road services.
"This program promotes better recovery and improvement of MSMEs and the government also continues to strengthen a conducive MSME and cooperative business ecosystem, so that they are more competitive," Harimba elaborated.
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The policy or initiative has led to 41.6 percent, or 263,459 square meters of public infrastructure commercial land allocated for MSMEs. In addition, there are 2,500 MSMEs in 117 Rest and Service Areas along the Trans Java toll road.
"In future, managers need to (utilize) public infrastructure area land as MSMEs' promotional space, such as by providing a place for fashion show activities, art communities, or media expose," he stated.
He explained that some issues were impeding MSMEs in terms of public infrastructure, such as a lack of synergy between regional governments and infrastructure managers, rental rates that failed to meet regulations, lack of variety in MSME products, and the need for regional governments' involvement in curating MSME products.
Hence, the use of promotional space in public infrastructure is expected to be optimized as the regulation had mandated.
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Translator: M Baqir I A, Mecca Yumna
Editor: Yuni Arisandy Sinaga
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