Micro, small, and medium enterprises (MSMEs) have begun to recover from the economic crisis caused by the COVID-19 pandemic in 2020, a minister said.
Minister of Cooperatives and Small and Medium Enterprises, Teten Masduki, posted the statement on the @Antaranews Instagram account here on Wednesday.
“I think what drives the national economy now is the MSMEs. The indicator is bank loans have progressed in MSMEs. This is an indication that MSMEs have started to be reborn,” Masduki explained.
A total of Rp285 trillion has been distributed as smallholder business credit (KUR), he said.
Based on the latest survey, the revenue of MSMEs who sold their products offline has decreased to 30 percent, he revealed.
Hence, the government has been trying to build a foundation and ecosystem for MSMEs during the two years of the pandemic, he added.
In 2022, MSMEs are expected to take advantage of the ecosystem that has been provided by the government to develop their business, the minister said.
“We are optimistic that the improved foundation is for the development of MSMEs and cooperatives. We have strengthened the Job Creation Law, financing access, path to business development, market access, and licensing easing,” he pointed out.
The minister also highlighted that Indonesian MSMEs have been quite resilient in facing the pandemic because they can adapt during crisis and pandemic situations, such as by switching to digital platforms to continue to survive.
There was not a single MSME in Indonesia which intended to close business even though they were hit by the economic crisis, according to the minister.
“This resilience of MSMEs is extraordinary. They have the ability to adapt and adjust to the market,” Masduki stated.
Meanwhile, the government has also continued to facilitate funding access for MSMEs by setting low interest rates and increasing budgets for smallholder business credits, he added.
Source: Antara News