In 2022, we have undertaken concrete initiatives to develop the ecosystem needed by actors, from upstream to downstream, from business model to technological transformation and business assistance
Jakarta (ANTARA) - The Cooperatives and Small and Medium Enterprises (SMEs) Ministry took various initiatives to encourage Micro, Small, and Medium Enterprises (MSMEs) to raise their class and show positive development, the ministry's secretary, Arif Rahman Hakim, stated.

"In 2022, we have undertaken concrete initiatives to develop the ecosystem needed by actors, from upstream to downstream, from business model to technological transformation and business assistance," he told ANTARA here on Friday.

These efforts include the construction of Red Palm Cooking Oil factories through the Self-Subsistence Palm Cooperatives, Fishermen Solusi (diesel fuel for cooperatives) program and financing access through the cluster People's Business Credit (KUR) scheme.


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They also involve MSMEs' partnership with major corporations or State-Owned Enterprises (SOEs), the ministry's digital transformation, and regulation strengthening through the Cooperatives and Troubled Cooperatives Handling Bill.

There are also MSMEs listing in Government Goods and Services Procurement Policy Agency's (LKPP's) E-Catalog, New Integrated Business Service Center (PLUT), sharing factory, and revolving fund financing through the Revolving Fund Management Institution (LPDB).

There is also the role of Smesco Indonesia as aggregator for enablers.

Moreover, the digital transformation effort by the ministry has at least been taken in 41 stakeholders through 109 programs.

Digital transformation is a collective effort between government institutions in which general targets are given, so that each institution can achieve it more easily, Hakim stated.

On the occasion, he also highlighted challenges in implementing plans or resolutions in 2023.

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These challenges include high uncertainty due to food commodity scarcity, the rise in energy prices, climate crisis, as well as the Russia-Ukraine war.

However, MSMEs' business model continues to be strengthened.

"The general guideline and framework will be created along with programs to implement them, so that future targets can be achieved more quickly and optimally," he noted.


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Translator: Sinta Ambarwati, Fadhli Ruhman
Editor: Fardah Assegaf
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