President Jokowi: Large Businesses-MSMEs Partnerships Should Greatly Contribute to Inclusive Economic Growth

President Jokowi virtually attends the signing of cooperation between the Foreign Investment Partnership (PMA) and Domestic Investment (PMDN) with MSMEs, Monday (18/01). (Photo by: Press Bureau of the Presidential Secretariat/Muchlis Jr)

Partnerships between large businesses and micro, small, and medium enterprises (MSMEs) should significantly contribute to inclusive economic growth, President Joko “Jokowi” Widodo said.

“On this auspicious occasion, I invite you, ladies and gentlemen, to ensure that this work contract really makes a significant contribution to inclusive economic growth,” President Jokowi said virtually at the signing of cooperation between the Foreign Investment Partnership (PMA) and Domestic Investment (PMDN) with MSMEs from the Bogor Presidential Palace, West Java, Monday (18/01).

This aim can be achieved by first, ensuring that the work contracts between the large businesses and MSMEs are sustainable as well as lead to increases in value and scope.

“If currently, the contract may only amount to Rp1 billion, next year it could be Rp5 billion, the following year, it could be Rp10 billion, it could be Rp100 billion, that’s what we want. So, that it can significantly increase the class and competitiveness of our MSMEs in the global market, this is important,” the President said.

Second, through the partnerships, the President expressed hope that MSMEs in the country can continue to upgrade product quality, management, product design to suit market demands and take advantage of collaboration with large businesses to raise their level.

“It will also improve the quality of MSME businesses, to make it more competitive, to improve the quality of the products, the design, the management, and it is also more bankable, because they can learn from big companies, be it large domestic companies or large foreign companies,” he stated.

Third, the President urged the partnership to be expanded. One of them is by involving MSMEs in export activities. “The exporters can invite MSMEs; this will immediately raise their level. The exporters are certainly more familiar with competitive prices, good product quality, and on-time delivery. They will learn these,” he said.

President Jokowi further said that the partnership is crucial to assist MSMEs in joining the global value chain.

According to Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia, the signing of the partnership is a follow-up effort to the President’s directive on collaboration or involvement of MSMEs with large businesses for the sake of increasing quality of MSMEs and economic equity.

For the record, the cooperation involves 56 large businesses, comprising 29 PMAs and 27 PMDNs, and 196 MSMEs spread across the country with a potential contract value of up to Rp1.5 trillion. (TGH/UN) (FI/MMB)