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Wednesday, 11 March 2020 00:00

3.6 Million Traditional Shops Need Empowerment

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Currently, there are 3.6 million traditional shops in Indonesia need to be empowered because they are families’ economic backbone amidst pressure from retailers. That was stated by Minister of Cooperatives and Small Medium Enterprises Teten Masduki after the launching of Bukalapak Partner’s Latest Virtual Program in Bandung, West Java on Sunday (March8).

Teten Masduki appreciated the effort by e-commerce startups which had empowered small-medium enterprises or traditional shops in Indonesia. Teten also said, with support from digital platform, traditional shop owners had increased number and types of products they sell. Besides that, the market reach can also be wider with competitive price. Not only selling daily needs, they can also be agent for electricity bill payment, money transfer, and many other.

About corona virus outbreak, Teten Masduki believed that the affected sectors are industry which import raw material. The impact was even felt internationally. However, the corona outbreak became opportunity for Small Medium Enterprises -SME, because many products with imported materials, including consumption, can be replaced by SME products.

According to Euromonitor International in 2018, most people in Indonesia, India, and Philippines shop in traditional grocery stores. From the total retail market value around 7.5 million trillion Rupiahs, 6.85 million trillion Rupiahs or 92 percent of them were transaction at traditional stores.

Teten Masduki explained, capital facility for SMEs is needed in this chance by allocating fund from banks, so that SMEs can increase production capacity. This year, budget allocated for SMEs funding is more than 220 trillion rupiah

Therefore, Teten Masduki asked SME players not to worry. Covid-19 outbreak must be a moment to get better condition. Even if economic slowdown happened, SMEs must be able to take over. He added, there must be support from regional and central government as well as massive funding. Therefore, 18 ministries that handle SME have to hold consolidation. Cooperatives and SME Minsitry will make acceleration, so that SMEs can be the mainstay and savior during crisis, just like in 1998 economic crisis. At that time, SMEs saved Indonesia with export value increased for 350 percent.

Read 188 times Last modified on Thursday, 12 March 2020 15:01
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