Gov’t Continues to Support MSMEs, Creative Economy to Level Up

President Jokowi visiting a handicraft store in Ubud sub-district, Gianyar regency, Bali province, Tuesday (16/03). (Photo: Bureau of Press, Media, and Information of Presidential Secretariat/Laily Rachev)

The Government has announced it continues to provide considerable support to push MSMEs to level up from local merchants to global suppliers.

It also said that the measure was taken as those MSMSs play a huge role in the national economy, contributing over 60 percent of Indonesia’s gross domestic product.

“It is not impossible or unattainable. With various efforts, Indonesia’s MSMEs are expected to have confidence, knowledge, and readiness to compete in the global market,” Minister of Finance Sri Mulyani said during the Conference of 500,000 New Exporters, Tuesday (20/04), convened online.

According to the Minister, in order to facilitate MSMEs to enter the global market, the Government has been negotiating Free Trade Agreements to connect Indonesian market with the global market.

The Government, she added, also continues to take measures to simplify licensing regulations to ensure ease for MSMEs in applying for the license of their business activities so multi-tiered licensing and certification fees can be minimized.

Sri Mulyani also stated that the Government has lowered interest rate for MSMEs in the hope that it can open access to bank loans through People’s Business Credit (KUR) program, adding that the Government has also been providing guidance and training for MSMEs through Ministry of Industry, Ministry of Trade, Ministry of Cooperatives and MSMEs, and regional governments.

“Lack of product standards that meet the global standards is a hindrance for MSMEs to enter the global market. Besides, in the production aspect, there is inconsistency of production and product quality and there is no production continuity. The Government is trying to improve (the quality) and increase budgets for research and development,” she said.

Furthermore, Sri Mulyani said that the Government also continues to build information technology infrastructure to reduce connectivity issues faced by MSME players so all MSMEs in Indonesia can obtain information on market opportunities and marketing coverage.

“With the development of National Logistic Ecosystem and infrastructure construction, the Government hopes that MSMEs can boost competitiveness and reduce distribution and logistics fees,” she remarked. (PR of Ministry of Finance/UN) (DH/EP)