Gov’t to Mitigate COVID-19 Impacts on MSMEs

President Jokowi delivers his introductory remarks during a Limited Cabinet Meeting on the Coronavirus Impact Mitigation Program for Micro, Small, and Medium Enterprises through a video conference from the Merdeka Palace, Jakarta Province, Wednesday (15/4). (Photo by: Public Relations / Rahmat).

President Joko “Jokowi” Widodo on Wednesday (15/4) chaired a Limited Cabinet Meeting on the Coronavirus Impact Mitigation Program for Micro, Small, and Medium Enterprises through a video conference from the Merdeka Palace, Jakarta Province.

According to President Jokowi, there are four important points to mitigate the impacts of COVID-19 for MSMEs. They are as follows:

First, accelerating the implementation of credit restructuring and relaxation programs for MSMEs that are experiencing difficulties.

According to the President, assistance mechanism for MSME loans including the loans in the form of interest subsidies and postponement of principal payments as well as the additional working capital loans should be implemented immediately.

“Do not wait until they close their businesses. Do not be late and ignite turmoil in the communities. I want that the budget for the needs is carefully calculated so that we can make a decision,” the President said.

Second, the President called for preparation for a new scheme during the pandemic such as a new scheme in financing, especially those related to investment and working capital.

“The submission should be easier, especially for the affected areas,” the President added.

Third, the President wanted that micro and ultra-micro businesses should be included in social assistance schemes, especially those related to food packages.

Fourth, the President said that MSMEs should be given an opportunity to continue the production.

“It includes the agricultural sector, home industry sectors, and traditional stalls, as well as food sector with strict health protocols,” the President said at the end of his remarks. (TGH / EN)

Translated by: Syarifah Aisyah
Reviewed by: M. Ersan Pamungkas