Increasingly, Jokowi gives a UMKM retention trouble code



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Jakarta, CNBC Indonesia – President Joko Widodo (Jokowi) again questioned the importance of the existence of small and medium-sized enterprises (MSMEs) to sustain the Indonesian economy.

Jokowi emphasized that through the Omnibus Employment Creation Law, the government would carry out important reforms to develop MSMEs.

This is the umpteenth message from Jokowi involving efforts to revive small Indonesian businesses.

“With the Employment Creation Law, it will be easier for MSMEs to open new businesses. Complicated regulations become simpler, the licensing process is integrated, simplified and made transparent with the help of technology,” said the President during a speech at the Google for Indonesia 2020 event that aired. on YouTube Google Indonesia, Wednesday (11/18/2020).

The former governor of DKI Jakarta also explained that the government is providing support to MSMEs in terms of financing. This is a sign that efforts to establish a UMKM holding are becoming clearer.

“The business ecosystem will continue to improve, not only in simplifying licenses but also in access to financing. The government has made it easier for MSMEs to access commercial loans with lower interest rates, with conditions that are not burdensome, especially for startups that have just opened a business ”. added.

Jokowi plans to establish a holding company in the micro, small and medium-sized enterprise (UMKM) sector. Where the MIPYME sector is the main business of BRI’s loan financing

This speech was broadcast by Jokowi at the National Coordination Meeting of the team for the acceleration of regional financial access (TPAKD) and the development of the Micro Waqf Bank (BWM) in December 2019).

“I’ve seen, [Di daerah] Business groups have been formed that will become clusters. I have transmitted it to the Coordinating Minister of Economy. [Airlangga Hartarto] so the group is under the umbrella of a place as if it is being celebrated, “Jokowi said.

Jokowi continued, when UMKM was held, a small business corporation would be formed and the market could more easily reach small businesses.

“So that later we have small companies, micro companies that can be easy [terjangkau] by national and global markets, “said Jokowi.

At the Google event, Jokowi mentioned that only 8 million micro, small and medium-sized enterprises (MSMEs) had made use of the technology. Although Indonesia has 64 million MSMEs. This means that very few are still using the technology.

“There are 64 million MSMEs, only 8 million or 13% are integrated with digital technology,” he said.

According to him, the digital economy can create more jobs and the MSMEs sector still has great potential to develop. If all of them are integrated with technology, the growth will be even higher.

Jokowi believes that the digital economy can grow rapidly if it is supported by a conducive business ecosystem.

[Gambas:Video CNBC]

(hps / hps)


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