Masduki, here on Monday, drew attention to several benefits to be derived from MSMEs joining cooperatives. He said the first advantage is that cooperatives can serve as a space for MSMEs to manage resources more efficiently and effectively.
Second, by joining a cooperative, MSMEs will have greater bargaining power in facing the market.
The third benefit to be gained is that cooperatives can serve as an instrument to develop the local economy and reduce dependence on imported products.
The minister explained that by joining a cooperative, MSMEs will also find it easier to obtain financing to increase the scale of their businesses. He believes this is because financial institutions are more willing to provide loans to larger organizations such as cooperatives.
The Ministry of Cooperatives and Small and Medium Enterprises in 2023 recorded the number of MSMEs in Indonesia reaching 66 million, with 99 percent of them being microenterprises.
"Micro business players, traders, farmers, and artisans should join a cooperative so that they can access financing schemes that allow them to experience economic escalation," he remarked.
Apart from that, he expressed hope that more financing would be provided to cooperatives engaged in the production sector, especially those utilizing the local potential, so as to support their further development and create more jobs.
The government has designed strategic policies to accelerate growth in all economic sectors with an emphasis on cooperatives and MSMEs' empowerment.
To achieve the goal, the ministry is facilitating access to financing through the Management Institution of Revolving Fund for Cooperatives, Micro, Small and Medium Enterprises (LPDB-KUMKM).
LPDB-KUMKM President Director Supomo drew attention to continued growth in the disbursement of LPDB-KUMKM financing to cooperatives in the real sector.
The disbursement rose from Rp443 billion (around US$28.6 million) in 2022 to Rp491 billion (around US$31.7 million) in 2023. As of August 2024, the disbursement had reached around Rp663 billion (around US$42.9 million).
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Translator: Shofi Ayudiana, Raka Adji
Editor: Azis Kurmala
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