Jakarta, – The President of the Republic of Indonesia, Prabowo Subianto, has signed Government Regulation (PP) Number 47 of 2024 which is a major breakthrough for Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. This PP is expected to provide a significant solution by regulating the elimination of bad debts for MSMEs operating in vital sectors such as agriculture, plantations, animal husbandry, fisheries, maritime, and other MSME sectors such as fashion, culinary, and the creative industry. This policy is expected to provide financial relief and open up opportunities for MSMEs to rise and develop further.
With the ratification of this PP, President Prabowo affirmed his commitment to empowering MSMEs as the backbone of the Indonesian economy. This program is designed to help MSME players who have been hampered by piles of debt, which often become obstacles for them to continue their businesses. Through the elimination of bad debts, it is hoped that they can continue business operations, create jobs, and contribute more to the national economy.
Putu Rusta Adijaya, an economic researcher from The Indonesian Institute (TII), expressed his appreciation for this policy.
“This PP is a clear signal of the state’s presence to help and empower MSMEs in the sectors mentioned through debt cancellation. This policy will have a positive impact on increasing MSME economic activity and strengthening their competitiveness, both in the domestic and global markets,” he explained.
Etikah Karyani Suwondo, Research Director of CORE Indonesia and Lecturer at the Faculty of Economics and Business, Sebelas Maret University (FEB UNS), also considered this policy to be very strategic.
“The debt cancellation policy for MSMEs is an effective tool in facilitating access to financing. By canceling old debts, MSMEs can re-apply for new, more productive credit, which in turn can support their business development and sustainability,” said Etikah.
Furthermore, Supari, BRI’s Director of Micro Business, welcomed the issuance of PP Number 47 of 2024.
“BRI appreciates the government’s quick steps in responding to the challenges faced by MSMEs, especially related to bad debts. We are optimistic that this policy will pave the way for better synergy between the government and the financial sector, which can ultimately encourage the progress of MSMEs. Thus, an inclusive and equitable people’s economy can be realized,” said Supari.
President Prabowo emphasized that this policy is part of the government’s ongoing efforts to support the growth of MSMEs, which is expected to strengthen the foundation of the national economy, improve people’s welfare, and create a healthier and more competitive business climate. In the future, this program is expected to be a model for other countries that have similar challenges in empowering the MSME sector.
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