Minister of Investment stresses the importance of MSMEs in the economic crisis

TEMPO.CO, Jakarta Investments Minister Bahlil Lahadalia at an event on Thursday acknowledged the important role of MSMEs or micro, small and medium enterprises in reviving the national economy during an economic crisis, which he said goes beyond the role of big business.

“The one who has become the fortress of defense of the national economy is you, ladies and gentlemen, the MSMEs”, declared the minister in front of an audience made up of micro-entrepreneurs in Banyuwangi, on August 11. “It’s the MSMEs”.

At that time, Indonesia’s economic deficit was 13%, inflation soared to 88%, and foreign exchange reserves were only $17 billion.

He recalled the country’s economic crisis in 1998, when Indonesia recorded a 13% deficit, inflation soared to 88% and foreign exchange reserves were only $17 billion. Meanwhile, big companies have either fled the country or filed for bankruptcy during the critical economic moment, he explained.

A similar situation reoccurred during the heat of the Covid-19 pandemic, which nearly brought down major businesses. However, he said MSMEs play an important role in the development of the national economy.

Furthermore, he said that the government was not fully involved in supporting MSMEs. In fact, MSMEs dominate about 99.3% of enterprises in Indonesia. Meanwhile, according to data from the Central Statistical Agency, the number has reached 64 million.

Bahlil Lahadalia explained that 120 million of the 131 million jobs in Indonesia are created by MSMEs, which account for 61% of Indonesia’s Gross Domestic Product (GDP).

“But, you know what? The credit that goes to the community for MSMEs is not more than 19%, that’s our injustice to MSMEs,” said the Minister of Investment.

“This goal is what we will push for all ladies and gentlemen to be able to access bank finance to help with working capital to inspire MSMEs to become strong and great entrepreneurs in the future,” he said. he assures.


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