Encouraging MSME Growth, Government Launches Various Programs
By: Dirandra Falguni )*
The government continues to demonstrate its commitment to encouraging the growth of Micro, Small, and Medium Enterprises (MSMEs) as the main drivers of the national economy. Various strategic programs and policies continue to be launched to increase the competitiveness of MSMEs, expand financial access, and accelerate the digitalization of this sector.
This support comes through synergy between the government, banking, academics, and community organizations. One form of concrete support for MSMEs comes from PT Bank Rakyat Indonesia (Persero) Tbk (BRI), which has successfully distributed credit to MSMEs up to IDR 1,106 trillion.
The Coordinating Minister for the Economy, Airlangga Hartarto, expressed his appreciation for this achievement, which is considered a strategic step in strengthening the MSME sector in Indonesia. He appreciated BRI for distributing credit of IDR 1,106 trillion to MSMEs. This is an extraordinary achievement and shows BRI’s significant efforts in strengthening the people’s economy.
In addition to credit distribution, BRI is also active in MSME empowerment programs. One of them is the involvement of 1,000 MSMEs in various business development initiatives, which is in line with President Prabowo Subianto’s Asta Cita to create quality jobs and support MSME growth.
To strengthen the inclusive financial ecosystem, BRI is expanding its network through AgenBRILink which now involves almost 1 million agents and stalls throughout Indonesia. This step is expected to increase access to banking services for micro-entrepreneurs in remote areas of the country.
Support for MSMEs also comes from the education sector and the business world. The Minister of Higher Education, Science, and Technology (Mendiktisaintek), Satryo Soemantri Brodjonegoro, welcomed the collaboration between his ministry and the Indonesian Employers Association (APINDO) in supporting MSMEs. Satryo highlighted the importance of synergy between academics, the business world, and the government in strengthening the MSME sector.
APINDO is currently running the APINDO UMKM Merdeka (AUM) program, which is the umbrella for APINDO UMKM Akademi. This program aims to support the transformation of MSMEs through education and training based on industry needs.
Minister of Higher Education, Science, and Technology (Mendiktisaintek), Satryo Soemantri Brodjonegoro said that the AUM Program is a collaboration between APINDO and Kemendiktisaintek which plays an important role in the development of MSMEs. According to him, all parties must open wider opportunities for micro-entrepreneurs to be more competitive.
Head of the MSME Division of APINDO, Ronald Wala, added that his party is trying to build a pentahelix-based MSME ecosystem, which involves entrepreneurs, government, academics, society, and the media.
Meanwhile, the General Chairperson of APINDO, Shinta W. Kamdani, emphasized that higher education has a major role in the growth of MSMEs. According to him, education, research, and technology are integral parts of the economy. Therefore, this collaboration must continue to be strengthened.
Not only in urban areas, support for MSMEs also continues to be strengthened in rural areas. The Gema Desa Organization is committed to helping rural MSMEs to be more competitive. The General Chairperson of Gema Desa, Sobari, said that one form of their concern for MSMEs is through holding an MSME bazaar by presenting 66 MSME product stands from 23 provinces, in the framework of the National Gathering (Silatnas) for the 17th Anniversary of Gema Desa at the Manahan Stadium, Solo, Central Java.
Sobari hopes that the government will be more active in providing economic guidance for village MSME actors, especially regarding capital and marketing. Currently, there are still many MSMEs in villages that have difficulty with capital and market access. It is hoped that the government can provide solutions so that they no longer depend on non-formal financial institutions such as plecit banks.
This year’s Gema Desa Silatnas is planned to be opened by President Prabowo Subianto, accompanied by Hashim Djojohadikusumo as the Mentor of Gema Desa and Deputy Minister of Villages, Ahmad Riza Patria.
For information, in Central Java, the MSME sector is the backbone of the regional economy. Based on the latest data, of the total 4.2 million business units in Central Java, 90.48% are micro businesses, 8.50% are small businesses, 0.94% are medium businesses, and only 0.08% are large businesses.
Deputy Chairman of the Central Java Provincial DPRD, Sarif Abdillah, highlighted the challenges faced by MSMEs, such as digitalization, access to technology, business assistance, and limited capital. According to him, MSMEs have great potential, but still face obstacles in digitalization and access to capital. Everyone must support government policies so that MSMEs are increasingly competitive.
