Jakarta – The Indonesian government has issued Government Regulation (PP) Number 47 of 2024 which regulates the policy of writing off bad debts for Micro, Small, and Medium Enterprises (MSMEs) in the agriculture, plantation, livestock, marine, and other sectors. This policy is expected to be a breath of fresh air for MSMEs managed by women, as well as encourage their increased competitiveness in the market.
Minister of Women’s Empowerment and Child Protection (PPPA), Arifah Fauzi, emphasized the importance of this policy to support the role of women in the national economy.
“Talking about women’s potential, it cannot be separated from economic empowerment through MSME development efforts. The Ministry of Cooperatives and Small and Medium Enterprises (Kemenkop UKM) in 2019 noted that of the total MSMEs in Indonesia which amounted to 65.5 million, 64 million were micro businesses where more than half were owned and managed by women. Based on these data, women have an important role in national economic recovery,” said Minister Arifah
This debt write-off policy also provides special support for women from vulnerable groups, such as female heads of households, disaster survivors, and survivors of violence. The policy is expected to give them more confidence in developing their businesses and gaining equal access to growth.
According to the Minister of PPPA, the important role of MSMEs, especially those managed by women, cannot be underestimated.
“Through this PP, let’s work together to create a strong, inclusive, and sustainable economy for all Indonesian people, including women MSME actors,” he added.
Based on UN Women data in 2023, one in three women in the world are involved in micro-enterprises, but often face obstacles in the form of access to adequate business support tools. Minister Arifah stated that women MSME actors can maximize their potential by starting to enter productive sectors such as agriculture, fisheries, animal husbandry, and plantations.
The Ministry of Cooperatives and SMEs also noted that in 2023, MSMEs contributed 61 percent to the national economy, far above the industrial sector which only contributed 18 percent. The issuance of this PP is expected to strengthen this contribution by increasing opportunities for women to be more productive and increase their competitiveness.
“With the issuance of PP Number 47 of 2024, it shows that the state is present for MSMEs, and provides opportunities for women as MSME actors to be more productive and strengthen their competitiveness in the market,” concluded the Minister of PPPA.
The debt cancellation policy for MSMEs is believed to be a strategic step in strengthening the national economy, creating more equal opportunities, and supporting women as drivers of the people’s economy. ><