DIGIVESTASI - Minister of Cooperatives and SMEs, Teten Masduki, highlighted the importance of advancing Micro, Small, and Medium Enterprises (MSMEs), especially in terms of business development, in order to contribute more to industrialization and national development. 

Teten revealed that Indonesia's economic growth showed positive figures, with a growth of 5.1 percent in the first quarter of 2024 and 5.05 percent in the second quarter of 2024, higher than the global economic growth of only 3.2 percent. However, according to the BRI Index Data survey, the MSME business index experienced a decline in the third quarter of 2024 due to weakening purchasing power, which had an impact on reducing turnover and increasing bad debts (NPLs) in the MSME sector to above 4 percent.

Teten emphasized the need for a restructuring program so that MSMEs can obtain relief such as postponement of installment payments, reduction of interest, and elimination of bad debts. In addition, he encouraged the acceleration of ease of financing through the People's Business Credit (KUR) and the use of Innovative Credit Scoring (ICS) as an obligation for banks and cooperatives that distribute KUR.

In the Cross-Sector SME Development Coordination Meeting in Palembang, South Sumatra, Teten also highlighted the challenges faced by SMEs, including the decline in the industry since 2008 which caused pressure on employment. According to him, this condition is exacerbated by Indonesia's low per capita income, which is still far from the target of US$30,000 per year to achieve developed country status by 2045.

Teten emphasized that MSMEs need to transform into part of industrialization to create higher quality jobs. Through the Job Creation Law, Teten hopes to encourage the relocation of manufacturing companies and investments to Indonesia, although challenges such as smart factory technology and IoT still hamper the relocation process.

He also emphasized the importance of MSME development that focuses on creating a new economy, by utilizing regional potential such as agricultural, mining, and marine products that can be processed using modern technology and enter the global supply chain. The Ministry of Cooperatives and SMEs (KemenKopUKM) also continues to make efforts through the construction of Joint Production Houses (RPB) to support the industrialization of MSMEs.

On the other hand, at the same event, the Acting Deputy for SMEs, Temmy Satya Permana, emphasized the importance of synergy between the central and local governments in supporting the development of SMEs through financing, human resource development, supply chain partnerships, and expansion of market access. The coordination meeting was also part of the celebration of National MSME Day 2024, which aims to encourage Indonesian SMEs to be more competitive in the global market.
 

Amiruddin, Head of the South Sumatra Cooperatives and SMEs Agency, added that empowering MSMEs is an important part of national development that focuses on the people's economy. The South Sumatra Provincial Government itself has encouraged MSMEs to transform into the formal sector and expand markets through digitalization and halal certification.

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