MSME Entrepreneurs Ask President Jokowi to Provide Zero Tax

Chairman of the Association of Indonesian Micro, Small and Medium Enterprises (AKUMINDO) M. Ikhsan Ingartubun meet the press after attending a meeting with the President at Merdeka Palace, Jakarta, Tuesday (18/6). (Jay/PR).

Although income tax for Micro, Small and Medium Enterprises (MSMEs) has been reduced from 1 percent to 0.5 percent, the MSME entrepreneurs consider the tax is still too high.

“We request (to President Joko “Jokowi” Widodo) to make it equal to that in China, which in 2020 the income tax for micro and small businesses is subject to 0 percent,” Chairman of the Association of Indonesian Micro, Small and Medium Enterprises (AKUMINDO) M. Ikhsan Ingartubun said after meeting with the President at Merdeka Palace, Jakarta, Tuesday (18/6).

In addition, MSME entrepreneurs also quoted President Jokowi’s speech on the 2018 State Budget, particularly to be consistent in carrying out sharia finance for the people’s economy. They considered that the Sharia finance is the most suitable for MSMEs.

MSME entrepreneurs also agreed that Indonesian entrepreneurs must participate in marketing their products online so that their local-wisdom-based products can enter global market.

“We must dare to enter the global market,” Ikhsan said.

According to Ikhsan, President Jokowi noted several important things including halal certification and patent rights in which the costs are still considered too expensive and the bureaucracy is complicated.

“We may abolish the tariff (on certification) if necessary to reduce the cost of MSMEs,” he said, adding that a number of entrepreneurs also reiterated the need to revise Law Number 20 of 2008 on MSMEs.

The President, Ikshan continued, will re-invite the MSME entrepreneurs in the next 2-3 months to review the policies that will be issued. (MAY/JAY/ES)

Translated by: Galuh Wicaksono
Edited by: Muhardi/Muhammad Ersan Pamungkas