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MSMEs BUILDING FOUNDATIONS AND INDONESIAN ECONOMIC DIPLOMACY

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By Adnan Kasogi Nasution ) *

Micro, Small and Medium Enterprises are the foundation and part of Indonesia’s economic diplomacy . The government is also serious about building a healthy ecosystem for MSMEs because it can absorb a lot of labor and move the wheels of the people’s economy, especially during the Covid-19 pandemic.

              Micro, Small and Medium Enterprises (MSMEs) have recently become the public spotlight. How could it not be, various assistance from the Ministry of Cooperatives and UMKM has been intensively carried out . Starting from assistance for disbursement of business funds with easy existing requirements, to various periodic assistance for micro, small and medium enterprises. The disbursement of MSME funds is always carried out in stages from month to month and is directly distributed to people who have been verified as business actors. This makes anyone excited to make a business. Then what are the real benefits for the government in distributing various assistance to people who have businesses? To answer it, it cannot be limited to mere assumptions, but must also be balanced with valid data to find the answer.

Based on Article 2 paragraphs (1 and 2) of Government Regulation Number 7 of 2021 concerning Ease, Protection and Empowerment of Cooperatives and Micro, Small and Medium Enterprises, it is explained that, ” The Central Government and Local Governments provide convenience, protection and empowerment for Cooperatives and Micro Enterprises. , Small and Medium Enterprises ( 1 ) Ease, perl indungan, and empowerment of Cooperative and Business of Micro, Small and Medium Enterprises, as referred to in paragraph (1) conducted by: a. coaching; and b. granting of facilities. The derivative rules regarding MSMEs, especially in the midst of the Covid-19 Pandemic situation, triggered the issuance of Regulation of the Minister of Cooperatives and Small and Medium Enterprises Number 2 of 2021, which is the seriousness of the Government in building MSMEs. This regulation is based on the Amendment to the Regulation of the Minister of Cooperatives and Small and Medium Enterprises Number 6 of 2020 concerning General Guidelines for the Distribution of Government Assistance to Micro Business Actors to Support National Economic Recovery in the Context of Facing Threats that Endanger the National Economy and Rescue the National Economy during the Corona Virus Pandemic Disease 2019 ( Covid -19) .

MSMEs have contributed a lot to this country in the economic development of Indonesian society. Special Staff of the Minister of Cooperatives and SMEs for Community Economic Empowerment, Riza Damanik explained that the contribution of MSMEs is targeted to reach 62.36% of gross domestic product (GDP) in 2021 and is expected to continue to increase to 65% of GDP in 2024. Development of cooperatives and SMEs in 2021-2024 has been highly mapped by Kement e rian Kop e constellation and SMEs. With the road map, it is targeted that in 2021, cooperatives and MSMEs will start moving then experience an increase in 2022 and an improvement in 2023.

Abroad, the Government continues to optimize economic plomasi . The RI Representative can be a catalyst for Indonesian business actors to penetrate the international market. The Indonesian Ambassador to Singapore, Suryo Pratomo said that although Singapore’s population is not as big as Indonesia, the market potential that Singapore has is very large. This opportunity must be utilized properly. In addition, with the challenges of increasingly high international market needs, it is hoped that Indonesian MSMEs can also develop their business digitally through e- commerce platforms .

Meanwhile, the Central Java Province Bank Indonesia Representative Office has carried out coaching efforts for MSMEs through various activities, such as the Gayeng UMKM exhibition which will be held in April / May 2021 with a series of activities including curation facilitation, capacity building, business matching , and promotion. , both at home and abroad.

The community can also play a role in optimizing these MSMEs by innovating creatively in building businesses according to market needs when business capital has been assisted by the government . Various events shocked the economy of Indonesia and several countries in the world in 1997-1998 , making large-scale businesses at that time unable to withstand the wave of the monetary crisis.

When we are able to imagine the global economic chaos that has also hit Indonesia, we hope that we will understand how big the economic impact will be on the social life of the people in Indonesia. Obviously, it will also spread to political life, education, health, as well as security and public order which will be disturbed. It seems that we also need to learn from history, that MSMEs have not been significantly affected. Therefore, so that the dark history does not repeat itself, such as when the monetary crisis hit Indonesia, the optimization of MSMEs must clearly be realized by all parties and the realization of it has begun by all stakeholders in Indonesia.

I believe that MSMEs are the foundation of the Indonesian nation’s economy, this is not a personal assumption, but I have explained it both historically, empirically, juridically, along with valid data therein. Hopefully this student’s anxiety can be conveyed to all elements of Indonesian society, from the political superstructure as well as policy makers, to the political infrastructure of society in particular, various mass media, and businessmen of course.

) * The author is a student of the Islamic University of Bandung

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