By: Gita Oktaviani
The government continues to make efforts to boost national economic growth by strengthening the Micro, Small, and Medium Enterprises (MSMEs) sector, which serves 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 of the concrete steps being implemented is the Free Nutritious Meal Program (MBG), where MSME actors will receive support in the form of a financing scheme that can help smooth their business operations.
This scheme is expected to address a major challenge often faced by MSMEs: limited capital and cash flow, especially when payments from the government are delayed. With the availability of working capital bridging, business owners can continue operating 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 close the gap between business execution and budget disbursement. As a result, the continuity of small businesses providing nutritious food can be maintained without the burden of delayed payments.
MSME actors themselves have voiced their need for more flexible access to capital to ensure the smooth execution of this program. In response, the Ministry of MSMEs held a coordination meeting led by the Deputy for Micro Enterprises, involving banking parties and MBG program managers, to formulate appropriate solutions. During the meeting, the banks expressed their readiness to provide financing access for MSMEs that need an initial capital injection.
This financing scheme is designed in response to the Nutritional Service Fulfillment Unit (SPPG) payment system, which has traditionally relied on a reimbursement mechanism, a system that has been 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 its implementation, this scheme will involve 46 banks that disburse People’s Business Credit (KUR) under the coordination of the Ministry of MSMEs, including four major banks in the Association of State Banks (Himbara).
The Deputy for Micro Business of the Ministry of MSMEs, Riza Adha Damanik, confirmed that the coordination meeting with Himbara and the National Nutrition Agency was productive, resulting in the possibility of advance payments for MSME kitchen needs in the MBG program.
Riza highlighted how the advance payment scheme is a concrete step by the government to assist MSMEs, which previously had to bear production costs on their own before receiving payments from the government.
According to gathered data, in one day, operational costs for the kitchens of MSMEs involved in the MBG program can reach IDR 30 million to serve approximately 3,000 meals, with each meal priced at IDR 10,000. In one week, this amount could escalate to IDR 210 million, a considerable sum for developing MSMEs.
Awareness of these challenges has driven the government to seek the best solutions so that MSMEs can continue operating without financial constraints. Therefore, banks under Himbara are invited to collaborate in creating a standardized and easily accessible financing mechanism for MSMEs, ensuring the MBG program runs smoothly and sustainably.
It is undeniable that the government remains committed to involving Micro, Small, and Medium Enterprises (MSMEs) and cooperatives in various national programs to drive economic growth and improve the welfare of society. Executive Director of the Segara Research Institute, Piter Abdullah, believes that MSME participation in government programs could potentially spur economic growth by more than 8 percent. However, he emphasized the importance of having a clear roadmap and technical implementation to ensure the optimal success of these policies.
Strategic programs such as the Free Nutritious Meal (MBG) initiative and the construction of three million homes are seen as needing MSME and small developer involvement to expand their economic benefits. If MSMEs are not involved, the impact of programs like MBG will not reach its full potential. Moreover, to achieve food self-sufficiency, cooperatives need to have a clear program plan to support the acceleration of this policy’s implementation.
The government has reaffirmed that MSMEs and cooperatives will be part of national priority programs. This policy not only enhances the competitiveness of MSMEs but also generates a ripple effect on economic growth and the overall welfare of society. With this strategic approach, government programs will become more effective in empowering the MSME sector.
This initiative proves that empowering MSMEs does not solely depend on central government policies but also requires active support from regional governments and the banking sector. With more flexible financing schemes and continuous training, MSMEs will have greater opportunities to grow and create a positive impact on society.
Through close collaboration among various parties, it is hoped that MSMEs can grow stronger, promote economic equity, and contribute to improving the welfare of society at large. Now is the time for MSME actors to seize this opportunity to strengthen the national economy and enhance its competitiveness.
*) Contributor at Jendela Baca Institute
