The Coordinating Minister for the Economy Airlangga Hartarto said that the Micro, Small and Medium Enterprises (MSMEs) sector dominates the Indonesian economic structure. It is recorded that MSMEs contribute 57 percent to national GDP. Airlangga also said that MSMEs absorb 97 percent of the total national workforce.
“The increase in the contribution of MSMEs to non-oil and gas exports has only reached 16 percent, which can be increased. So that it reaches 17 percent in 2024,” said Airlangga at the Public Lecture and Book Study of Batch XIV UMY MSME Financing event (19/01/2023).
According to bisnis.tempo.co, he explained that the government is actively developing MSMEs so they can upgrade. One of them is by increasing access to finance. According to him, the progress of MSME loan disbursement of total credit is currently still limited to around 21 percent.
Therefore, the government is pushing for increased access to financing through People’s Business Credit (KUR). The government is targeting the credit portion to reach 30 percent in 2024. In addition, funding will also come from the state budget, revolving funds, and sharia financing through microfinance institutions.
Airlangga also said that the government was trying to form a better MSME ecosystem. Starting from the production of goods, financing sales goods produced by MSMEs, to involving large companies as offtakers. According to him, this step will support the development of MSMEs, such as by increasing the quantity and quality of production.
“In order for the distribution of MSME financing to run optimally, the government is integrating existing programs. Both upstream and downstream,” he added.
