By: Uliana Respati *
MSMEs are one of the wheels of the regional economy that are expected to empower workers so as to reduce unemployment. The Ministry of Cooperatives, Small and Medium Enterprises (KUKM) emphasizes that the government always gives partiality to small and medium enterprises (SMEs).
Rully Indrawan, Deputy for Institutional Affairs at the Ministry of Cooperatives and Small and Medium Enterprises, revealed that in the past four years, there were many policy breakthroughs raised to improve the performance of business people at this level, from cutting down the People’s Business Credit (KUR) interest rate, reducing MSME taxes and marketing assistance. and training to the latest application of Online Single Submission (OSS). So, if there are a handful of parties who say that the government in the Jokowi era does not side with SMEs. According to him, the statement was not based on existing data and facts.
Previously, Vice President Candidate 02 Sandiaga Uno said that the current government did not side with small and medium enterprises (SMEs) because of problems overlapping licensing and legal certainty. Rully explained, compared to a few years ago, now the licensing process to try had been much faster because of the OSS.
Rully said that getting a business permit in Indonesia would take weeks. Far from Malaysia which has been one day, even Singapore in a matter of hours. Now with the implementation of OSS, at least the licensing process can be pursued within one working day. This system is also effective in preventing acts of corruption, while the opportunity to carry out these despicable actions has been closed starting from the lowest level of bureaucracy. So that there is no need to take care of licensing from the last sub-district, sub-district, let alone to issue permit fees up to Rp. 800,000. With the OSS, the licensing fees were reduced to Rp. 0.
Evidence of government’s partiality is also seen in terms of financing. In 2015, KUR interest rates were still at a very high position, reaching 22 percent. Of course this makes it difficult for Small and Medium Enterprises to get funding. However, this changed during Jokowi’s leadership – JK. In four years, the KUR interest rate was reduced gradually to 12%, 9% and currently only 7%.
“The interest continues to be reduced so that SMEs can access capital more easily. Thus their competitiveness can continue to increase and be able to compete with foreign products, especially in the ASEAN region, “said Rully.
The government also cut the final Income Tax (PPh) rules for MSMEs from 1 percent to 0.5 percent. The aim is so that MSMEs can move up the class faster, so that small ones become middle and medium ones move big.
“The government also helps open market access by bridging SMEs with big entrepreneurs. So they don’t worry if the production is not absorbed. All will be absorbed because we provide the market, “he said.
The government also continues to organize various education programs for SME actors or communities who want to enter the entrepreneurial / MSME sector. As a result, the entrepreneurial ratio continues to rise. In 2014, the entrepreneurial ratio in Indonesia was only 1.55 percent. Then it edged up to 1.65 percent in 2016 and soared to almost double in 2017 at 3.1 percent. Where the figure has exceeded the international standard entrepreneurial ratio which sets a minimum ratio of 2 percent in each country.
Not only that, Jokowi also helped facilitate opportunities for MSMEs to explore the virtual world, namely by launching Go Online MSMEs simultaneously in 30 regencies / cities in Indonesia, this idea is in line with President Joko Widodo’s vision to make Indonesia as Digital Energy of Asia. This is certainly proof that the government is committed to communicating 8 million MSMEs by 2020. This commitment shows the government’s alignments in advancing MSMEs as one of the backbones of the Indonesian economy.
In addition, the alignments and concerns of the government were also evident in the formation of the Saber Pungli (Sweeping Besih) Task Force, through Presidential Regulation No. 87 of 2016. In addition to the Center, the organ of Saber Pungli’s formation arrived at the Regency level. So that its existence can reduce extortion behavior which is often experienced by MSME actors. This is certainly proof that under the leadership of Jokowi the government has shown concern for business people, and has become a breath of fresh air for MSMEs to continue to rise and empower.
- The author is an observer of economic issues