Cooperatives, SMEs Ministry Affirms Support to MSMEs during Pandemic
Minister of Cooperatives and Small and Medium-sized Enterprises Teten Masduki affirmed that the Government will continue to support Micro, Small, and Medium-sized Enterprises (MSMEs) particularly during COVID-19 pandemic.
The Ministry of Cooperatives and Small and Medium-sized Enterprises will, first, continue to optimize MSMEs product marketing on online marketplaces and to reduce imported products.
“We have inked an agreement with several digital cross-border e-commerce platforms such as Lazada and Shopee, they have agreed not to sell imported products. We will also approach other platforms. I think this move is really important to protect our market from invasion of imported goods,” Teten said during a virtual press conference on the Indonesia’s Economic Growth in the Second Quarter of 2021, Thursday (5/8).
He added that there are three promising sectors of the MSMEs, namely foods and beverages, homecare, and healthcare.
Second, the Ministry will also propose the Government to relax the operations of small business during public activity restrictions.
“In order to implement the President’s directive, we are communicating with regional governments to relax the operations of small business by strictly following the health protocols,” he said.
Third, the Coordinating Ministry will assist the MSMEs to enter global supply chain.
“There are potentials for SMEs to export their products. Moreover, there is market demand for it yet there is also a problem on its supply chain. We will look at the problems one at a time,” he added.
On that occasion, Teten mentioned that the MSMEs sector in the second quarter of 2021 has improved which is shown by the amount of bank loan disbursed for this sector that has reached Rp1,024 trillion in May this year.
The figure, he added, is 20 percent out of the total of Rp5,576 trillion.
“If the disbursement of bank financing reaches 20 percent, it means the figure is close to that before the pandemic,” he said.
In addition, disbursement of Smallholder Business Credit (KUR) has also reached 58.09 percent from the total target of Rp253 trillion.
Teten went on to say that based on the Ministry’s independent survey, 85 percent of the MSMEs said that their businesses have returned to normal in the second quarter of 2021, while 22 percent of MSMEs that closed their businesses have reopened. (MAY/UN) (RAS/MMB)