By: Cahyo Widjaya*)
President Prabowo Subianto, as a national leader who is also a retired high-ranking Indonesian military officer, is determined to push for easier licensing for the advancement of Micro, Small, and Medium Enterprises (MSMEs).
Through this policy, the eighth President of the Republic of Indonesia hopes to provide a breath of fresh air for indigenous entrepreneurs and MSMEs who have been the main pillars of the Indonesian economy. The policy is also expected to break the dependence of the national economy on certain elites and open up wider space for MSMEs to develop.
The determination of the national leader born in 1951 has received widespread attention from observers and business organizations. Executive Director of the Indonesia Political Review (IPR), Ujang Komarudin, assessed that President Prabowo’s desire to boost the people’s economy is not only a commitment to MSMEs, but also to empower the community so that they are no longer confined by oligarchic interests.
So far, the Indonesian economy is still dominated by a number of elites and certain politicians, who often only focus on the benefits of a handful of parties. According to Ujang, President Prabowo really wants to utilize Indonesia’s natural resources for the welfare of the people, not just a handful of people.
President Prabowo’s move is in line with the views of the Chairman of the Indonesian Indigenous Entrepreneurs Association (HIPPI) of DKI Jakarta, Uchy Hardiman, who fully supports the Head of State’s attention to MSMEs as drivers of the national economy.
As an organization that focuses on empowering the people’s economy, HIPPI sees that the President’s support for MSMEs shows a strong intention to advance the small and medium business sector which has so far contributed more than 60 percent to Gross Domestic Product (GDP) and employs 90 percent of the workforce in Indonesia.
Uchy also expressed his belief that the composition of the ‘Red and White Cabinet’ formed by the eighth President of the Republic of Indonesia was filled with experienced figures who had high integrity to maintain national economic stability.
Not only through the ease of licensing, the national leader born in 1951 also took the initiative to take other concrete steps, such as announcing a plan to write off debts for around 6 million MSMEs, fishermen, and farmers who were still affected by the financial crisis in 1998 and 2008.
This policy will later be ratified in the form of a Presidential Regulation (Perpres) which is expected to be completed soon. In his statement, President Prabowo emphasized that this initiative aims to ease the financial burden of MSMEs who have been under pressure from debt that has not been resolved. This step is expected to provide new opportunities for small and medium business actors to rise and expand their businesses without burden.
Hashim Djojohadikusumo, the younger brother of President Prabowo, revealed that the debts that will be written off are old debts that have been paid off by banking insurance, but are still recorded in the Financial Information Services System (SLIK) owned by the Financial Services Authority (OJK).
With the debt cancellation policy, MSMEs can now breathe a sigh of relief and have the opportunity to innovate and develop their businesses without having to be burdened by past debts. Hashim believes that the policy will be a major boost for MSMEs to invest further to strengthen the national economy.
In facing various economic challenges, MSMEs have proven to be resilient as the backbone of the country’s economy. This debt elimination measure is also predicted to receive a positive response from MSME actors who feel more open to developing after being free from the never-ending debt trap.
This regulation also illustrates President Prabowo’s intention to maintain national economic stability through concrete steps and clear support for the people’s business sector.
This debt amnesty policy is also expected to trigger national economic growth by opening up greater space for small entrepreneurs to increase the scale of their businesses and develop them sustainably.
Hashim emphasized that through this policy, every MSME actor will have the same opportunity to achieve success, without being constrained by the financial burden of past crises.
President Prabowo hopes that this step can provide a stimulus for the people’s economy and be an inspiration for the community to develop their businesses with more confidence and enthusiasm.
Support for this policy can also be seen from HIPPI’s enthusiasm. Uchy Hardiman assessed that the government currently led by the nation’s leader who is also a retired high-ranking Indonesian military officer has firm and clear leadership in implementing policies to support MSMEs. HIPPI is confident that the economic orchestra under President Prabowo’s direction will create a harmonious symphony that brings new spirit to national economic growth.
The steps taken by the eighth President of the Republic of Indonesia show that MSMEs are not just part of the national economy, but also an important pillar that needs to be continuously empowered. With easy licensing, debt relief, and full support from the government, MSMEs are expected to grow stronger and lead Indonesia towards better economic independence. Through these steps, the Head of State proves his commitment to realizing a people’s economy that is empowered and sustainable for all Indonesian people.
*) Researcher of People’s Economy – Institute of Prosperous Economy
