By: Gita Oktaviani
The government continues to push for national economic growth by strengthening the Micro, Small, and Medium Enterprises (MSME) sector as the backbone of Indonesia’s economy. Through various strategic programs, the government aims to ensure that all business actors, especially MSMEs, have broader access to financing, training, and mentoring to help them grow and contribute more significantly to the economy.
One concrete step currently being implemented is the Free Nutritious Meals (MBG) Program, where MSME actors will receive support in the form of financing schemes to help smoothen their business operations.
This scheme is expected to address the main challenges often faced by MSMEs, namely limited capital and cash flow, especially when payments from the government experience delays. With the availability of working capital bridging, business owners can continue to operate without being burdened by financial constraints that could potentially hinder their business sustainability.
The Minister of Micro, Small, and Medium Enterprises (MSMEs), Maman Abdurrahman, emphasized the importance of working capital bridging to fill the gap between business implementation and budget disbursement. This ensures that small businesses providing nutritious food remain operational without being weighed down by delayed payments.
MSME actors themselves have voiced the need for more flexible access to capital so they can smoothly run the program. In response, the Ministry of MSMEs held a coordination meeting led by the Deputy for Micro Enterprises, involving banks and the managers of the MBG program to formulate the right solutions. During the meeting, the banks expressed their readiness to provide financing access to MSMEs requiring initial funding.
This financing scheme is designed as a response to the payment system of the Nutritional Service Fulfillment Unit (SPPG), which has relied on a reimbursement mechanism that is burdensome for MSMEs. With faster access to capital, it is hoped that small business owners can focus on food production without having to wait for government fund disbursements.
In practice, this scheme will involve 46 banks that distribute People’s Business Credit (KUR) under the coordination of the Ministry of MSMEs, including four large banks that are members of the Association of State Banks (Himbara).
The Deputy for Micro Enterprises at the Ministry of MSMEs, Riza Adha Damanik, confirmed that the coordination meeting with Himbara and the National Nutrition Agency went well, resulting in the possibility of upfront payments for MSMEs’ kitchen needs in the MBG program.
Riza highlighted how this upfront payment scheme is a concrete step by the government in assisting MSMEs, which have had to bear production costs themselves before receiving payments from the government.
According to gathered data, the operational costs of an MSME kitchen involved in the MBG program can reach IDR 30 million per day to serve around 3,000 food portions, priced at IDR 10,000 per portion. In a week, this can increase to IDR 210 million, a substantial amount for an MSME that is still developing.
The awareness of these challenges has driven the government to seek the best solutions so that MSMEs can continue their businesses without financial obstacles. Therefore, banks under Himbara have been invited to collaborate to create a financing mechanism that is uniform and easily accessible by MSMEs so that the MBG program can run smoothly and sustainably.
There is no doubt that the government remains committed to involving MSMEs and cooperatives in various national programs to drive economic growth and improve public welfare. The Executive Director of Segara Research Institute, Piter Abdullah, believes that MSME participation in government programs could potentially drive economic growth by more than 8 percent. However, he emphasized the importance of having a clear roadmap and proper technical implementation to ensure the policy is optimized.
Strategic programs like Free Nutritious Meals (MBG) and the construction of three million houses are considered to require MSME involvement and small developers to ensure the broader economic benefits. If MSMEs are not involved, the impact of programs like MBG will not reach their full potential. Additionally, to achieve food self-sufficiency, cooperatives need to have clear program designs to support the rapid implementation of these policies.
The government has emphasized that MSMEs and cooperatives will be part of national priority programs. This policy not only enhances the competitiveness of MSMEs but also has a ripple effect on economic growth and public welfare as a whole. With these strategic steps, government programs will be more effective in empowering the MSME sector.
This initiative proves that MSME empowerment is not only dependent on central government policies but also requires active support from local governments and the banking sector. With more flexible financing schemes and ongoing training, MSMEs have greater opportunities to grow and make a positive impact on society.
Through close collaboration between various parties, it is expected that MSMEs will grow stronger, drive economic equality, and contribute to improving public welfare more broadly. Now, it is time for MSME actors to seize these opportunities to strengthen the national economy and enhance its global competitiveness.
*) Contributor at Jendela Baca Institute
