The Covid-19 pandemic cannot be predicted to be over within one or two years. For Indonesia, this means that it will still be very dependent on the domestic economy. The problems of employment, food and health are the three main aspects that are currently faced. Currently, unemployment and poverty rates in various countries continue to increase, including in Indonesia. The pandemic has caused many people to lose their jobs and income, which has resulted in lower purchasing power.
In regard to this domestic economic condition, Indonesia relies on Micro, Small and Medium Enterprises to keep the wheels of the economy moving. In fact, they are also having a tremendous impact of the pandemic. In 1998, Indonesia experienced an economic crisis that hit several countries but was not as global as this time. At that time, Micro, Small and Medium Enterprises emerged as saviors of the national economy, with exports rising 350%. Now, what is happening is a global crisis which also affects Micro, Small and Medium Enterprises from two sides, namely supply and demand.
The government then provides stimulants to revive Micro, Small and Medium Enterprises in the form of a national economic recovery policy. Take for example, the government keeps trying to provide them for cash flow, especially connected to banking institutions. The government has also allocated funds amounting to Rp123 trillion for the program as well as debt restructuring, namely a 6-month delay in debt repayments. Many Micro, Small and Medium Enterprises have difficulty paying installments due to the low demand and income. In addition, the government also subsidizes installment interest of 6% and provides tax subsidies up to 0%, and offers new loans with only 3% interest. Currently, the absorption of the program has reached 52.77%.
For micro businesses that have not been reached by banks or bankable and have not received bank financing, they will be assisted through productive Presidential Assistance.
It is hoped that the National Economic Recovery Program will be able to make Micro, Small and Medium Enterprises strong again and become a motor of the national economy.