Government Accelerates Stimulus for Micro Enterprises Amid Covid-19 Pandemic
By: Raditya Putu Pandet ) *
The co-19 pandemic hit almost all fields, especially economics. Especially MSME entrepreneurs, they are increasingly sad because the business is quiet. The reason is because people prefer to shop groceries than other needs. The government is ready to help MSME entrepreneurs by organizing a national economic recovery program.
The UMKM businessman is the party that has been harmed by Corona , because the shop is quiet. Many people who prefer to buy via an online shop or marketplace . Purchasing power also declined due to a lot of new unemployment. This burden is getting heavier if they still have installments at the bank or finance company . They are distressed because of the difficulty of paying.
The government immediately moved quickly to help micro, small and medium enterprises (MSMEs). Why does it have to be MSME? Because it is proven that this business absorbs more than 90% of the workforce. More than 60% of state revenue also comes from the UMKM tax. So small entrepreneurs must be considered, because they are also the driving force of the economy in Indonesia.
President Joko Widodo, when met at the State Palace, stated that all ministers of the economy must immediately provide a stimulus for relaxation and restructuring to MSMEs. The goal is to avoid being affected by the slow growth of the world economy due to the co-19 pandemic. Not only MSMEs, Cooperatives are also given revolving funds so they can survive.
The first step to help MSME entrepreneurs is to relax credit, which means there is a reduction in loan interest rates. If the interest is usually to be paid 6% per month, then it is reduced to 3%. In addition, the loan period is also extended, so the nominal to be paid is also getting smaller. That applies to loans at banks and finance companies .
In addition, as many as 12 million MSME entrepreneurs were given emergency working capital assistance worth 2.4 million from President Joko Widodo. The President hopes this money will be used to increase the amount of merchandise. In a sense, don’t even use it for consumptive shopping. But the money was turned into businesses so that the business could survive even in the midst of the co-19 pandemic.
MSME entrepreneurs also receive tax reductions. So the nominal tax to be paid is not as big as usual. The government understands that during the pandemic, many parties were struggling, including Micro, Small and Medium Enterprises. So they get help in the form of tax reductions so as not to spend too much money.
In addition to MSME businesses, cooperatives also receive assistance from the government in the form of working capital, which amounts to 100 billion rupiah. This is included in the national economic recovery program. Why does it have to be cooperative? Because they also help small people to get funds (in savings and loan cooperatives) on relatively easy conditions.
Assistance from the government for Micro, Small and Medium Enterprises entrepreneurs and cooperatives also proves their concern for small people. So, the president is not only close to high-class entrepreneurs, but also thinking about the fate of small businesses and MSME entrepreneurs, and cooperatives. Because they are also victims of the corona storm that hit our country.
Assistance is provided in the form of a reduction in loan interest rates, not write-offs. Because as a professional entrepreneur, MSME businesses must pay off their debts. So with the relaxation of credit, they are expected to still be jawb will credit. If not, it will affect banks. They can be included in the Bank Indonesia blacklist .
The government pays attention to the fate of small people, especially entrepreneurs of Micro, Small and Medium Enterprises. They were given capital injections, tax deductions and credit interest rates. It is hoped that these aids can help MSME entrepreneurs to continue to survive and run their business with enthusiasm. Even though we’re still in the co-19 pandemic.
) * The author is a contributor of The Jakarta Institute
