President Jokowi Urges Cooperatives, MSMEs to Seize Moment of Positive Export Trend

President Jokowi delivers his speech during the Revolving Fund Distribution for Cooperatives in the Framework of National Economic Recovery, Thursday (23/7), at the State Palace, Jakarta. (Photo by: PR/Teguh)

President Joko “Jokowi” Widodo has urged micro, small and medium enterprises (MSMEs) and cooperatives to benefit the current positive export trend.

“I want the indicators that I have stated before to be followed by a swift movement from cooperatives. Also, we must provide loan for business players, especially MSMEs,” the President said during the Revolving Fund Distribution for Cooperatives in the Framework of National Economic Recovery, Thursday (23/7) at the State Palace, Jakarta.

President Jokowi has also ordered the Revolving Fund Management Institution (LPDB) to immediately disburse Rp1 Trillion funds to cooperatives and subsequently to be given to its business players.

“We only have July, August, September for this leverage. If we are able to lever, God willing, it will be easier in the fourth quarter. Next year we will have it much easier. Our opportunity is in July, August, September,” the President said, adding he has also ordered his Ministers to spend the State Budget (APBN) in these three months.

According to the President, the working capital assistance is expected to improve liquidity of cooperatives whose value is from Rp2 billion to Rp50 billion as conveyed by Minister of Cooperatives and SMEs.

The interest has also been announced to have lowered by 3%, making it very competitive.

“So, the cooperatives will give it to the members, business actors. Don’t make it too high. How much is the interest rate usually be given to the members? If from the LPDB, the rate is 3%. How much, then? 12%, 12% means good, it is even better if it can go lower. This is what we want,” the President stated.

President Jokowi also stated that in early August, the Government will disburse productive working capital assistance to 12 million MSMEs expected to leverage the economy.

The total value as stated by Minister of Cooperatives and SMEs is approximately Rp381 billion, he added.

“If we have set a target number, do not stop once we reach it. Keep adding new targets so that our cooperatives can have really good liquidity and provide loans to the members,” he said.

The President also noted that the disbursement by the LPDB and cooperatives should be carried out in simple and quick steps to avoid closed down cooperatives.

For this reason, the President said he had ordered them not to wait for business players to help, but to use additional productive working capital to drive the economy, especially in the regions.

“Once again I hope this is the beginning of providing liquidity assistance to cooperatives and we hope the Rp1 trillion will be distributed as soon as possible to cooperatives in the country,” the President said. (TGH/EN)

Translated by: Fairuzzamani Inayatillah
Reviewed by: M. Ersan Pamungkas