To resolve poverty in the long term is by creating job opportunities at locations of povertyKlaten, Central Java (ANTARA) - Creating employment opportunities can address the problem of extreme poverty in the long term, Cooperatives and Small and Medium Enterprises (SMEs) Minister Teten Masduki stated on Tuesday.
Extreme poverty has become the government's focus, as outlined in Presidential Instruction Number 4 of 2022 on Extreme Poverty Eradication that targets zero-percent extreme poverty across 36 provinces and 514 cities and districts by 2024, the minister pointed out.
"To resolve poverty in the long term is by creating job opportunities at locations of poverty," he remarked at the opening of Extreme Poverty Eradication in Cooperatives, Micro, Small, Medium Enterprises event in Klaten, Central Java.
The ministry collaborates with the Klaten government and relevant stakeholders to create strategic programs in the Cooperatives, Micro, Small, and Medium Enterprises sector in a bid to address the issue of extreme poverty in that area, he affirmed.
The initiative includes programs, such as promotion of micro businesses' flagship products, business and legal consultations for businesses, provision of people's business credit program in the region, coaching for cooperatives, human resources' competence development, as well as facilitating efforts through the use of machines for maggot cultivations, he elaborated.
Other programs include human resources' capability development through the vocational initiative, micro finance literacy education through the Lamikro app, and issuance of business permits and halal certificates for micro businesses through Garda Transfumi (Micro Businesses Formal Transformation), Masduki elaborated.
The minister revealed that financial literacy and digitization education, business credit, and human resources' capacity development will also be provided for plantation, farming, and fisheries as well as cooperatives and small and micro businesses.
These programs are part of the government's measures in preparing employment opportunities so as to eradicate extreme poverty, he remarked. However, Masduki continues to urge business sector identification in villages so as to ensure that the economy can still go on to generate jobs.
He said that the issue of the high extreme poverty rate in the cooperatives and SMEs sector presents its own challenge.
Minister Masduki pressed for collaboration from ministries and agencies, regional governments, and banks to support the priority program.
"The key is providing developed businesses with financing. Indeed, it has to be relaxed a little, so the MSMEs can easily access financing, (since) there are still so many MSMEs players, who have no assets, and are still renting the business establishment, yet when they went to the bank, they have to give collateral. In other countries, such (system) is no longer adopted. (They) use credit scoring," he explained.
Head of Klaten District Sri Mulyani stated that currently, five sub-districts and 25 villages are listed in the extreme poverty category. Meanwhile, there are 55,205 MSMEs players.
She drew attention to some main products of Klaten MSMEs that include range of batik styles, striped woven material, convection, carpentry, ceramics, tobacco, and rice.
"Hopefully, next year, we can reduce the extreme poverty rate," Mulyani concluded.
Related news: Minister targets extreme poverty to reach zero percent by 2024
Related news: Widodo confident extreme poverty to drop drastically by 2024
Related news: Govt still optimizing efforts to eradicate extreme poverty: Minister
Translator: Maria Cicilia G P, Mecca Yumna
Editor: Sri Haryati
Copyright © ANTARA 2023
