Coordinating Minister Airlangga Affirms The Government's Commitment To Empowering MSMEs

JAKARTA – As one of the driving forces of economic growth during the Covid-19 pandemic, MSMEs play an important role in GDP. Even during the pandemic, the contribution reached 61% and was able to absorb 97% of the total national workforce.

The government through the Coordinating Ministry for the Economy has also affirmed its commitment to Empowering Micro, Small and Medium Enterprises (MSMEs) in Indonesia.

During his visit to Central Java, Coordinating Minister for Economic Affairs Airlangga Hartarto took the time to visit MSME activities in Mangkang Kulon Village, Tugu District, Semarang City, Sunday, January 30.

Coordinating Minister Airlangga had a direct dialogue when he went around visiting the micro-business booth. He also discussed and discussed with MSME actors who were dominated by housewives.

"The government has prepared several programs so that your mother's efforts can be helped during the pandemic. In addition, with cooking oil for Rp. 14,000.00 and below, it can help MSME actors," said Coordinating Minister Airlangga.

During this visit, there were 20 MSMEs participating, including Melati Nata De Coco, Pecel Bu Gendul, Mooicraf, Mecca Jewelery, Warung Bu Kayah, and various other micro businesses.

One of the business actors, Mrs. Sutia, has a home-based nata de coco production business without preservatives with the label Melati Nata De Coco. The business, which was initiated thanks to her husband's encouragement, started when Ibu Sutia was laid off.

In order to help MSMEs affected by the COVID-19 pandemic to bounce back, the Government has issued policies including the National Economic Recovery Program (PEN) for MSME Support.

In 2021, there are several stimuli in the MSME Support PEN program with a budget allocation of Rp. 96.21 trillion that can be utilized by MSMEs, including Interest Subsidies (KUR and Non KUR), Placement of Government Funds at Partner Commercial Banks to support the expansion of working capital loans. and restructuring of MSME loans, MSME Working Capital Credit Guarantee, Micro Business Productive Banpres (BPUM), Cash Assistance for Street Vendors and Stalls, and Government-borne MSME Final PPh incentives (DTP). In addition, there is also additional support in the form of exemption from minimum accounts, load costs and electricity subscriptions that can be utilized by MSMEs.

As of December 31, 2021, the total realization of PEN support for MSMEs for 2021 was Rp. 83.19 trillion with a total of 34.59 million debtors/MSMEs. For Central Java, the total MSMEs that have utilized BPUM have reached 1,600,165 recipients, of which 73,913 recipients have been distributed in Semarang City and 30,390 in Semarang Regency.

In 2022, the Government again increases the KUR ceiling to Rp373.17 trillion and extends an additional 3% KUR interest subsidy so that the 3% KUR interest rate continues until the end of June 2022.

"With the presence of government programs aimed at recovering and strengthening MSMEs, it is hoped that economic stability in the region, especially in the city of Semarang, can be achieved," concluded Coordinating Minister Airlangga.