The government is supporting MSMEs in their export endeavors through initiatives such as providing a low-interest financing facility called people's business credit (KUR), he said in a statement released on Monday.
Additionally, several fiscal incentives are being offered to entrepreneurs with a focus on exports, as shared during the Annual Leaders’ Meeting (ALM) Indonesia-Australia 2023.
To further strengthen the government's support for MSMEs, President Joko Widodo instructed the minister to establish an export task force during a limited cabinet meeting in February 2023. The task force aims to promote the expansion of MSMEs' export markets.
During his visit to Australia, Hartarto met with Indonesian diaspora members who are engaged in MSMEs in Australia and entrepreneurs collaborating with MSMEs.
He expressed his appreciation to them and regarded it as an exceptional situation. Several Indonesian companies attending the event were led by Indonesian MSME champions.
The government commends the active support of the diaspora members in advancing Indonesian MSMEs, particularly in entering the export market, specifically in Australia, he added.
According to data from the Cooperatives and Small and Medium Enterprises (SMEs) Ministry, in 2022, MSMEs contributed 60.51 percent to the gross domestic product (GDP), approximately Rp9,580 trillion (approximately US$69.5 billion), and provided employment to 97 percent of the workforce, totaling 120.59 million people.
Currently, only 4.1 percent of MSMEs in Indonesia participate in global value chains (GVCs), in contrast to Malaysia (46.2 percent), Thailand (29.6 percent), Vietnam (20.1 percent), and the Philippines (21.4 percent).
Representing the Indonesian diaspora in Australia, Ivan Paulus, CEO of Livingstone International, acknowledged the relatively high demand for Indonesian products in Australia.
He expressed his commitment to encouraging the importation of more products from Indonesia instead of China.
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Translator: Sanya Dinda S, Fadhli Ruhman
Editor: Anton Santoso
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