Cluster-based KUR financing is a solution for people's business units that are not yet included in conventional banking servicesJakarta (ANTARA) - Vice President Ma'ruf Amin has said he hopes that the Indonesian entrepreneurship movement will spur social change.
"The requirements for economic progress are the ability to boost the quality of human resources and the number of domestic entrepreneurs. Entrepreneurs often create positive social change through innovative, inclusive, and sustainable products/services," he expounded in Semarang, Central Java, on Tuesday.
He made the remarks while simultaneously inaugurating six Cooperative and MSME (micro, small, medium enterprise) Integrated Business Service Centers (PLUT KUMKM)—PLUT Semarang; PLUT Buleleng district, Bali; PLUT Purworejo district, Central Java; PLUT Dairi district, North Sumatra; PLUT Maros district, South Sulawesi; and PLUT Kendari city, Southeast Sulawesi.
Amid the pandemic recovery process, the government has continued to encourage MSMEs and entrepreneurs to bounce back with the help of empowerment, social assistance, financing, and mentoring.
"Including supporting the growth of an entrepreneurial ecosystem, such as networking and business incubation, product/service innovation based on research, using technology and increasing digital literacy, as well as creating a conducive business climate," he added.
In the future, it is hoped that those efforts will continue to be made and various programs and budgets from ministries, institutions, local government, and other stakeholders will be combined under a grand design for National Entrepreneurship Development, the Vice President said.
"Then also followed by market access, product marketing and promotion, as well as access to raw materials/production equipment, and other constraints," he added.
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He then asked that the distribution of People's Business Credit (KUR) under a special KUR scheme based on business groups or clusters through the KUMKM Revolving Fund Distribution Institution continue to be improved.
"Cluster-based KUR financing is a solution for people's business units that are not yet included in conventional banking services," he said.
According to him, KUR distribution must be community-based or focus on community business groups . The implementation of the program must be carried out in a responsible, accountable, and transparent manner to accommodate many people's needs and ensure the security of their businesses.
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"I also invite all of us to develop entrepreneurship in the community. The entrepreneurial spirit needs to be introduced from a young age by instilling innovative, creative and independent, honest and unyielding mindsets and behaviors, including in the education curriculum," Amin said.
The Vice President is targeting to increase Indonesia’s entrepreneurship ratio to 3.95 percent by 2024, financial access to 90 percent, MSMEs’ export contribution to 21.6 percent, and the number of digital MSMEs to 30 million.
Since 2013, at least 74 KUMKM PLUTs have been set up across 74 districts/cities in 32 provinces of Indonesia.
At the event on Tuesday, Vice President Amin was accompanied by Minister of Cooperatives and Small and Medium Enterprises (SMEs), Teten Masduki, Central Java Governor Ganjar Pranowo, five district heads, and one mayor of a region where the PLUT was established.
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Translator: Desca Lidya N, Resinta S
Editor: Fardah Assegaf
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