VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

The Finance Ministry empowers export-oriented micro, small, and medium enterprises (MSME) to step up their contribution to boost the country's economic growth affected by the COVID-19 pandemic.

"MSMEs play an important role. Hence, the government is seriously endeavoring to help improve MSMEs," Luky Alfriman, director-general of Funding and Risk Management of the ministry stated during an online discussion on Tuesday.

Alfriman highlighted the multiplier effect of empowering export-oriented MSMEs in the form of job creation and increasing the gross domestic product (GDP).

"Do not forget that we are also talking about equalization here, and this is among the benefits to empowering MSMEs," he remarked.

MSMEs are among the sectors with the most acute brunt of the pandemic in line with the weakening global trade.

"The decline (in exports) is significant. Our exports in the first semester only reached US$76.41 billion," he pointed out.

The government has launched various programs to support MSME operators to survive amid the COVID-19-induced crisis.

The national economic recovery (PEN) program has included the policy to support MSMEs, with a budget totaling Rp123.46 trillion.

The PEN program for MSMEs encompasses fund deposits in state-run banks, investment funding from the Agency for Revolving Fund Management (LPDB), MSME's income tax borne by the government, and interest rate subsidy.

The government has also tasked the Indonesian Export Financing Institution (LPEI) to boost exports of MSME products based on Finance Minister Regulation No. 372/KMK.08/2020.

The ministerial regulation ensures that MSMEs get working capital and investment loan to boost their competitiveness in the national and international markets.

"This is financial funding for MSME that holds export potential, though constrained by banking access," he added. (Antaranews)