VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

A screenshot of senior deputy governor of Bank Indonesia, Destry Damayanti - 

Micro, small and medium enterprises (MSME) loan growth exceeded the total credit growth as of June 2021, in sharp contrast with June 2020, senior deputy governor of Bank Indonesia, Destry Damayanti, has revealed.

"The latest credit developments as of June, MSME loans continue to show positive signals. (As per) The latest data in the second quarter of 2021, MSME loan growth has exceeded total credit growth," she said during an online discussion on the acceleration of MSME digitization, originating from Jakarta on Friday.

Based on data provided by Bank Indonesia, MSME loan growth stood at 0.13 percent in June, 2020, while total credit growth was pegged at 1.49 percent. Meanwhile, in June, 2021, MSME loan growth reached 2.35 percent, while total credit growth was recorded at 0.59 percent.

In terms of segmentation, MSME credit growth was the highest in the medium and small segments, while micro credit growth continued to contract, Damayanti said.

New loans in the MSME sector, which has the largest share of credit, were recorded in the trade sector, both retail and large, especially the food and beverage trade sector, she added.

BI also noted an increase in new credit disbursement, which even exceeded credit repayments. As of June, 2021, new credit disbursement stood at Rp72.23 trillion, while loan repayments were pegged at Rp60.21 trillion, she informed.

In addition, there was an improvement in the performance of MSMEs in 2021, Damayanti noted.

According to a survey conducted by the Mandiri Institute, as of April, 2021, around 84.8 percent of MSMEs were operating normally, 8.1 percent were operating on a limited basis, and 7.2 percent had halted operations, she said.

This number reflects an increase compared to 2020, when only 35.2 percent of MSMEs were operating normally, 34.5 percent were operating on a limited basis, and 30.4 percent had halted operations amid the pandemic, she added.

Although there was an improvement in the MSME sector, Damayanti reiterated that the key to economic recovery will be the handling of the COVID-19 pandemic in Indonesia.

"So, we are required to carry out health protocols in a disciplined manner, vaccination continues to be accelerated," she remarked.

The decline in mobility due to the implementation of the public activity restrictions (PPKM) has had an impact on the performance of the MSME sector, she said//ANT

Minister of Villages, Development of Disadvantaged Regions, and Transmigration, Abdul Halim Iskandar, inspects an isolation site prepared for COVID-19 patients. (ANTARA/HO-Villages, Development of Disadvantaged Regions and Transmigration Ministry) - 

Self-isolation sites prepared across villages nationwide can accommodate up to 45,710 COVID-19 patients, Minister of Villages, Development of Disadvantaged Regions and Transmigration, Abdul Halim Iskandar, has said.

"The isolation points have been prepared in 20,844 villages nationwide and are equipped with 45,710 beds," he said here on Friday.

As of July 19, 2021, as many as 396,289 village residents have been diagnosed with COVID-19, with 24,768 villagers admitted at village isolation points, he added.

"Earlier, during the onset of the COVID-19 pandemic, we consolidated villages nationwide to prepare isolation points for each village. The isolation points were prepared to allow villagers infected with COVID-19 to self-isolate at the provided location, if they could not self-isolate at their homes," the minister said.

Villages have utilized several locations to set up makeshift isolation points such as village halls, village-owned enterprise buildings, school buildings emptied due to the current implementation of the distance learning system, and vacated homes, he elaborated.

He also said the daily operation of each isolation point will be supervised by local healthcare centers (Puskesmas) and volunteers groups, which have been formed in each village.

"Village volunteer groups have been authorized to manage isolation points at their respective villages. As of today, the total number of volunteers is 1,117,066," Iskandar said.

Each village volunteers group is headed by the village head and deputized by the Village Consultative Body (BPD) chairperson, he informed.

The main duty of the village volunteer groups is dealing with COVID-19 cases in the villages, including operating village isolation points, he added.

The volunteer groups are also collaborating with village leaders as well as religious and traditional leaders for performing their activities, the minister said.

Village volunteer groups' daily activities are also being supported by the village-affiliated police and military officers, and local ministry's representatives, he added//ANT

Minister of Law and Human Rights, Yasonna Laoly - 

The Ministry of Law and Human Rights on Friday granted remissions to children in conflict with the law, as part of National Children's Day commemorations.

"Efforts to protect the best interests of children in conflict with the law can come in various forms, including through child remissions," Minister of Law and Human Rights, Yasonna Laoly, said at an online event held to mark National Children's Day, originating from Jakarta on Friday.

According to the minister, the remissions were not just a legal mandate, but a tangible expression of his ministry's concerns in prioritizing the interests of children and accelerating the process of integrating children into society.

"The only hope from this remission is for children to be able to reunite with their families and communities more quickly, in order to reorganize their future," Laoly said.

Protecting the interests of children is the same as protecting the future of the nation and mankind, he remarked.

The Constitution of the Republic of Indonesia clearly states that every child has the right to survive, grow, and develop, and has the right to protection from violence and discrimination, he noted.

This does not only mean that the state recognizes children's rights, but also that it is responsible for ensuring their fulfillment, he said.

"The same goes for children who are in conflict with the law. The fact that they have to be included in the Juvenile Criminal Justice System and some of them have to serve a criminal period, does not mean that their protection, guidance, coaching, education, and health services are neglected," he added.

Children in conflict with the law should not be viewed as petty criminals, but as potential future successors of the nation, whose rights to identity, health, and education need to be protected so they are able to participate in development, Laoly said.

Indonesian children who are in conflict with the law need to always believe that their future is brighter, maintain optimism in order to produce their best work, and maintain the spirit to keep moving forward despite facing obstacles, he added//ANT

MSMEs in 10 Priority Tourist Destinations Are Encouraged to Use Digital Applications - 

MSMEs are encouraged to maximize the use of digital applications in order to increase their income and increase their business class.

Directorate of Digital Economy, Directorate General of Informatics Applications, Ministry of Communication and Informatics RI facilitates 26,000 MSMEs in 10 Priority Indonesian Tourism Destinations with assistance from facilitators, Training Centers, data package assistance, marketplace aggregator applications, cashier applications (POS - Point of Sales), and learning applications online for six months so that MSMEs are more skilled in doing business using digital platforms.

The 10 priority tourist destinations include Lake Toba (North Sumatra), Tanjung Kelayang (Babel), Mandalika (NTB), Wakatobi (Southeast Sulawesi), Morotai (North Maluku), Thousand Islands (Jakarta), Tanjung Lesung (Banten), Borobudur (Central Java), Bromo (East Java), and Labuan Bajo (NTT). With each region as many as 2,600 SMEs.

The assistance carried out in these 10 Priority Tourism Destinations is the achievement of active-selling from 26,000 MSMEs in the manufacturing sector producer category. From Active Selling, MSMEs are expected to be able to revive their online stores in the marketplace by uploading photos and product descriptions, interacting with potential consumers, and also conducting transactions in the marketplace.

The target of this activity is a continuation of the target achieved in the previous year, namely on-boarding (owning or opening an online store) of 20,000 MSMEs in traditional markets in ten designated cities.

“This activity is a continuation of last year's on-boarding targeting traditional market traders. This year we are doing active-selling so that SMEs are more aggressive in trading in the online market and can maximize digital applications to increase access to marketing, capital and businesses that are relatively effective and efficient," said Puti Adella Elvina, Sub Coordinator of the MSME Impact Study and Survey. Ministry of Communication and Informatics RI in Jakarta, Friday (23/07/2021).

For six months, from July to December 2021, the 26,000 MSMEs were assisted in the active-selling process, receiving training materials on the topics of Social Media Utilization, E-Commerce, Financial Technology, POS (Point of Sales) Applications, and Technology 4.0. The hope is that MSMEs will be able to increase the capacity to use digital applications in their business activities.

In addition, 26,000 MSMEs will also get a marketplace aggregator application facility, to facilitate the monitoring process of online store activities in several marketplaces. MSMEs are also guided to implement the POS (Point of Sales) application so that their transaction processes are recorded properly. The two applications can be used for free for six months for MSMEs who participate in this activity. To access the digital platform, MSMEs are provided with data package facilities.

The facilitators deployed are ready to assist MSMEs both online and offline. Offline assistance can be carried out at the Training Center provided in each area complete with wifi and laptop facilities. However, if there are obstacles to attending the Training Center, the facilitator will come to the business location or domicile of the MSME actors. Special internet access at various regional points is also provided for MSMEs whose business locations are far from the Training Center.

This was also emphasized by Sumarno, Coordinator of Digital Technology Adoption of MSMEs at the Ministry of Communication and Information Technology of the Republic of Indonesia on the sidelines of his field visit: “The facilitators who have received training are ready to assist MSMEs both online and offline. You can do it at the Training Center, you can do it in a business place too. This assistance and facilities are provided for 26,000 MSMEs for six months.”
The use of digital technology and applications must continue to be echoed so that MSMEs in various industries, levels, and regions, can experience the benefits of digital technology to support their business.

This program is also supported by publication activities to increase public awareness through local radios in ten target areas that reach remote areas, which invites MSME actors to maximize opportunities to develop their businesses by optimizing the use of digital applications. This awareness is also addressed to relevant stakeholders, so that they can synergize in encouraging the development of MSMEs in their regions.

Along with the Mentoring Activities, the RI Kominfo also conducted a survey of 37,000 MSMEs in the producer and processing sector at the same target location online and offline. This survey aims to update data related to the adoption of digital technology by MSMEs, which can be used as a basis for the implementation of the next program.

There are three major agendas for MSMEs in the country from the Directorate of Digital Economy, Directorate General of Informatics Applications, RI Kominfo, namely on-boarding, active-selling, and scale-up. The three agendas aim to make MSMEs grow bigger and become at the forefront of the people's economy.

“We have three programs for SMEs so that they become big businessmen. From the usual stalls, we encourage them to have an online shop (on-boarding). Then we facilitate them to increase their business activities on various digital platforms (active-selling). And in the future, we will accompany them to spread their wings and develop their business with a scale-up program,” concluded I Nyoman Adhiarna, Plt. Director of Digital Economy, Ministry of Communication and Informatics RI//PR/NK