"Based on my communication with several associations, it (the condition) is still good," the ministry's secretary, Arif Rahman, stated at Gadjah Mada University (UGM), Sleman, Yogyakarta, on Friday.
To anticipate the impact of continued deflation, he encouraged various parties to help maintain the demand for MSME products in the country to remain stable.
In addition, he expressed hope that MSME players would be able to increase the reach of marketing and improve the quality of each product sold by MSMEs.
He affirmed that the Ministry of Cooperatives and SMEs continued to encourage efforts to increase the capacity of MSME human resources through various training and mentoring programs.
According to Rahman, mentoring programs facilitated by the ministry last for an average of three years, with the participants selected being MSMEs with vast potential to grow.
"In this era, indeed, we tend to encourage mentoring more, not only training that is temporary. They continue to be assisted until they can be independent," he remarked.
However, he stated that the percentage of credit disbursement for MSME financing remains a challenge.
This is because the disbursement target set so far of 30 percent has yet to be achieved.
"So far, it has not (been achieved). It is still around 19, 20, 22 percent. This is a challenge for us," he remarked.
Statistics Indonesia (BPS) recorded that Indonesia's economy experienced a deflation of 0.12 percent (month-to-month) in September 2024. The deflation has occurred since May 2024, with 0.03 percent in May, 0.08 percent in June, 0.18 percent in July, and 0.03 percent in August.
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Translator: Luqman Hakim, Raka Adji
Editor: Azis Kurmala
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