VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

The Indonesian government continues to accelerate the recovery of micro, small and medium enterprises from the impact of the Covid-19 pandemic. This was stated by Minister of Cooperatives and Small and Medium Enterprises, Teten Masduki in a webinar last Thursday, (23/9). He said that the recovery was through financing policies, assistance, institutional strengthening through cooperatives, access to marketing and digitalization technology, as well as multi-stakeholder cooperation with various institutions. According to Minister Teten Masduki, a financing stimulus has been provided for micro, small and medium enterprises. This includes  those that are not yet bankable, meaning that they have not met the bank's requirements to obtain business loans, or those that are already bankable.

Minister Teten Masduki further explained that the stimulus included Presidential Assistance for Productive Micro Businesses, interest subsidies for people's business loans, and cooperative financing through the Revolving Fund Management Agency.

The Ministry of Cooperatives and Small and Medium Enterprises also encourages the enterprises to transform digital flatforms. According to Minister Teten Masduki, the digital transformation is key to the recovery and economy of the micro, small and medium enterprises sector during the pandemic and post-pandemic. He also explained that so far, the onboarding to the digital ecosystem has reached 15.9 million, an increase of 7.9 million during the pandemic.

Minister Teten Masduki added that the government also continues to encourage banks to increase their involvement in efforts to help the micro, small and medium enterprises sector continue to grow and develop. He admitted that financing from banks is only 20 percent of the total bank credit. This figure is much lower compared to neighboring countries. The government targets that by 2024, banking credit to the micro, small and medium enterprises sector can reach 30 percent. Banks need to continue to encourage lending for investment in the productive sectors which have the potential to further encourage economic movement.

The webinar was also attended by Coordinating Minister for Economic Affairs, Airlangga Hartarto. He said that the fiscal assistance that was rolled out for the sector through the National Economic Recovery Fund until September 23, 2021, has been enjoyed by 27.39 million micro, small and medium enterprises. The funds are channeled through several programs, such as interest subsidies, placement of government funds to banks and partners, to support the restructuring program and increase their  working capital. In addition, it is also rolled out in the form of productive assistance for micro businesses, cash assistance and final income tax incentives.