Jakarta – The government of President Prabowo Subianto has shown a strong commitment to accelerating the growth of the Micro, Small, and Medium Enterprises (MSMEs) sector as the backbone of the national economy. With various new policies targeting financing and protection of MSMEs, the government is optimistic that it will be able to raise the potential of MSMEs to be more competitive and contribute to economic growth.
Coordinating Minister for Economic Affairs Airlangga Hartarto explained that one of the strategic policies implemented is the elimination of books and bills of problematic credit for MSMEs, especially for farmers and fishermen who have had difficulty accessing banking due to their credit history.
“If there is no policy, those who have problematic credit will be recorded in the Ministry of Finance database and will not be able to get banking facilities. This policy is like a moratorium for those affected by problematic credit, so that banking access can be reopened,” said Airlangga.
The Chief Executive of Banking Supervision of OJK, Dian Ediana Rae, stated that the Draft Government Regulation (RPP) is being formulated to regulate the technical implementation of this policy. This policy is in line with the mandate of Law Number 4 of 2024 concerning the Development and Strengthening of the Financial Sector (UU P2SK) which is supported by the Financial Services Authority (OJK).
“Access to financing for MSMEs is very important for economic resilience. With the RPP, it is hoped that the write-off of books and credit collections can be clearer and more beneficial,” said Dian.
Meanwhile, Member of Commission VII of the Indonesian House of Representatives, Siti Mukaromah, said that the Prabowo government is pushing for the separation of the Ministry of Cooperatives and the Ministry of MSMEs to ensure a more intensive focus on MSME development. This separation shows the government’s seriousness in accelerating MSME growth.
“This synergy creates a positive business climate for MSMEs, supported by regulatory commitments that favor MSMEs and intensive assistance,” said Siti.
Government policies are expected to be able to answer various challenges faced by MSMEs, such as access to capital, innovation, and marketing. The ASEAN Investment Report 2022 recorded around 65.5 million MSMEs in Indonesia which contributed 60 percent to GDP and absorbed 97 percent of the total workforce. With this policy, President Prabowo hopes that the MSME sector will be able to move up a class and become the backbone of a stronger and more resilient Indonesian economy.
The government’s efforts to develop MSMEs are expected to strengthen the national economy and open up new jobs. This optimism is expected to be the beginning of a brighter future for Indonesian MSMEs.