Remarks of President of the Republic of Indonesia at Hand Over Ceremony of Business Identification Number for Micro and Small Entrepreneurs, Nanggala Kopassus Sports Complex, Jakarta, July 13, 2022

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation Date 13 Juli 2022

Category: Remarks @en

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Bismillahirrahmanirrahim.

Assalamu’alaikum warahmatullahi wabarakatuh,
Good Morning,
May prosperity be upon us,
Shalom,
Om swastiastu,
Namo buddhaya,
Greetings of virtue.

Distinguished Cabinet Ministers. Accompanying me today are Minister of Cooperatives and Small and Medium Enterprises Mr. Teten Masduki, Minister of Investment Mr. Bahlil Lahadalia, Minister of State-Owned Enterprises Mr. Erick Thohir. Please rise, Mr. Erick. He manages banks that will provide services to all of you. Also present today Presidential Chief of Staff General Moeldoko, please rise, Mr. Moel.
Distinguished Chairperson of Indonesian Chamber of Commerce and Industry (Kadin) Mr. Arsjad, good morning;
Distinguished Commander of the Army Strategic Command (Pangkostrad) and General Commander of Special Forces Command (Danjen Kopassus);
Distinguished leaders, CEOs of State-Owned Enterprises and private enterprises;
Ladies and Gentlemen, owners of MSMEs.

Good morning. Have you got your Business Identification Number (NIB)? Show me your NIB. Let me see if you already have ones. All right, thank you.

When I started my business, the biggest challenge I had was not having a business license. It was in 1988 or 1989. I didnt have a business license, so I didnt have access to banking. I could not apply for a loan from banks because I didnt have a business license. If I would apply for a business license back then, I had to pay a large amount of fee, so for several years I did not have the SIUP (Trade Business License) and TDP (Company Registration Certificate), which are very much needed by micro and small entrepreneurs.

A license is a very important thing. I have checked the OSS (online single submission) to see if the process to get the NIB is fast or not. I saw that the process was fast. However, I will check again later to see if the process to get the Business Identification Number is still fast.

I am glad that the amount of NIB issued from August 2021 to July 2022 are 1.5 million. Before the OSS, the license issued per day were only 2,000. Now, the amount has reached 7,000-8,000 per day. Nevertheless, what I want is not 7,000-8,000 licenses per day, but 100,000 licenses per day. Regional heads must encourage micro, small, and medium entrepreneurs to have license in the forms of Business Identification Numbers.

[The process for obtaining a license] is free of charge, right? If anyone has to pay in the process of getting a Business Identification Number, please come to the stage, I’ll give you a bike. Nobody comes to the stage, because all the processes are free, right? This is the key in business. Obtaining a license is important. We have 65.4 million MSMEs in 2021 and their contribution to our economy, our GDP, is very large, 61 percent.

Therefore, it would be a mistake if we do not pay attention to the MSMEs, since their contribution makes up 61 percent of the national economy and they provide 97 percent of job creation. We must pay attention to the fact that most of the job creation is not done by companies, Mr. Arsjad, but by micro, small, and medium enterprises.

It is good news that as of April 2022, the realization of bank loan has reached Rp 1,195 trillion and for micro business loan (KUR) we have budget of Rp373 trillion this year, half of which has been disbursed, namely 49 percent. I previously asked the CEO of BRI, the number is 49 percent. If you have had the NIB and have potential market, you can go to BRI or other banks that distribute KUR loan.

How much the interest rate, Mr. CEO? We have PEN funds, economic recovery fund, due to the pandemic, so the interest rate is still 3 percent per year. If you want to get a loan from a bank, you must have a good calculation. If you have the opportunity to get a loan of Rp 200 million, and you use Rp 100 million of it to buy a car, I am sure that you will not be able to repay the loan. Now there is an opportunity for you because only 49 percent of the KUR loan has been disbursed. There is still Rp 185 trillion available in the bank. Once again, if you want to get a loan, you must calculate it.

Are there many micro entrepreneurs here? Please raise your hands. Please come to the stage. Yes, those of you who raise your hand may come to the stage. It is for micro entrepreneurs only. If you are not a micro entrepreneur, I will ask you to go back to your seat. Yes, please come to the stage. The man sitting there, please come to the stage. This is for micro entrepreneurs. Yes, you may wear t-shirt.

All right. We have one, two, three, four, five yes, five persons. Please introduce yourself and tell me your business.

Wageningtiyas (Micro Entrepreneur)

Assalamu’alaikum warahmatullahi wabarakatuh.

Thank God I can be here with micro, small, and medium entrepreneurs. I hope your businesses run well, with the support from Mr. Jokowi and other officials. My name is Wageningtiyas, you may call me Wage, sir.