By: Perwitarani Handayani )*
The government helps the development of small and medium enterprises during the pandemic, because they are the backbone of the country’s economy. MSME entrepreneurs must be helped so that they do not go out of business and can survive the Covid-19 Pandemic .
During the pandemic, almost all sectors experienced sluggishness, from high-end traders to small-scale traders. This blow is very severe, especially for MSME businessmen. They are confused because people’s purchasing power has decreased and as a result the income from this business has also decreased. Though this business is the only source of income.
The government is committed to helping the MSME sector during the pandemic, so that they do not close their businesses. The reason is because if small entrepreneurs go out of business, the country’s economy can be disrupted. This is because they are the backbone of our economy because 90% of traders are in the small and medium sector. Assistance is not only in the form of social assistance but also an opportunity to export and expand the target market.
MSMEs also actually have good potential to penetrate the export market, but there are some who do not know how to manage the bureaucracy, or do not have strong capital to start it. Director General of State Assets Rionald Silaban stated that only 14% of MSME products were exported by Indonesia. This figure is low, so the government wants to motivate them again.
Rionald added, hopefully more MSMEs will export their products, because they have a lot of potential. They are also innovative and their products are not inferior to foreign ones. The government’s target in 2024 is that 21.6% of small and medium enterprises contribute to the export sector.
Therefore, MSME businesses deserve assistance from the government through changes, from a credit ratio policy to a macroprudential inclusive financing ratio policy. This is done through the expansion of the Bank’s partners in the distribution of inclusive financing, inclusive financing securities, and other business models. So that MSME businessmen get credit relief for additional business capital.
In addition, the government provides assistance through the LPEI (Indonesian Export Financing Agency). This institution will assist in financing, underwriting, insurance, and consulting services. The goal is to encourage the development of MSMEs in producing suitable goods for the export market.
This assistance from the government must be appreciated, because MSME entrepreneurs are not only given social assistance but also the opportunity to export products. Means the government gives a hook, not just fish. In the sense that if only the cash given will be spent, and if the money is no longer there then they will be distraught.
However, if there is assistance in the form of insurance and consulting services, MSME businessmen can develop their business, so as to produce high-quality goods, so that they are eligible to enter the export market. They can also expand the target market and penetrate the global market, and get a lot of profit because the goods are sold in dollars.
In addition, through a consultation session with LPEI, MSME entrepreneurs can ask how to manage the bureaucracy before exporting goods, what are the requirements, how is the marketing, etc. They will understand how to run a business for the export market and become world-class professional entrepreneurs.
If more and more MSME entrepreneurs enter the export market, it is very good because goods from Indonesia will be spread all over the world. They can know that the quality of the product is good and not inferior to other goods in the global market.
The government is committed to promoting MSME businesses, therefore they deserve assistance in the form of consultations, so they can enter the export market and increase their income. That way, small and medium entrepreneurs will no longer be out of business, but still try hard to survive in the midst of a pandemic.
)* The author is a contributor to the Press Circle and Cikini Students
