Kemenkop UKM Plans MSME Transformation For Economic Equity And Eradication Of Poverty

JAKARTA - The Ministry of Cooperatives and SMEs (Kemenkop UKM) is preparing a strategic plan (Renstra) to encourage the transformation of MSMEs, which is in line with the vision of Prabowo Subianto-Gibran Rakabuming Raka's government, namely building from villages and under to achieve economic equality and poverty eradication.

Deputy for Micro Business at the Ministry of Cooperatives and SMEs Yulius said that his party and Bappenas were preparing Strategic Plans to transform MSMEs by transforming the economic structure into industrial-based high value and implementation of technology and innovation.

The encouragement will be given so that MSMEs improve technology, so that they can be connected to large businesses.

"We need to encourage this to occur in the supply chain," said Yulius at the National MSME Day Symposium with the theme 'Sustainable Advanced MSME Towards Indonesia Gold 2045 and MSME Innovation Expo 2024 at the Kemenkop UKM Building, Jakarta, Monday, August 12.

Yulius said that his party had carried out various trainings and guidance so that MSME actors could advance to class and become suppliers for large businesses.

"We are working together with Apindo (Indonesian Entrepreneurs Association) so that this small and medium business is connected to big businesses. Because if we just ignore small businesses, of course they will always be left behind. In fact, this is a potential that we must encourage," he said.

To support this, the Ministry of Cooperatives and SMEs has also provided convenience in financing MSMEs through the People's Business Credit (KUR) scheme which offers very competitive interest rates, which is 6 percent. This figure is far below the commercial interest rate which generally reaches 20 percent.

However, said Yulius, his party encourages access and financing innovations such as KUR to be expanded to help MSMEs to be connected to large businesses by utilizing research, technology, business protection and entrepreneurship development.

One of the vision and mission of Asta Cita, the elected president Prabowo Subianto, is to increase quality employment, encourage entrepreneurship, develop the creative industry and continue infrastructure to go to Indonesia Gold 2045.

According to Yulius, the goal of increasing entrepreneurship is to face tough challenges. The reason is, currently the national business structure is still dominated by micro business actors, which reaches 98 percent.

In addition, the national entrepreneurship ratio to date has only reached 3.4 percent and is targeted to increase to 4 percent throughout 2024.

"This entrepreneurship is a tough thing to push because until now it has only reached 3.4 percent of all MSMEs," he said.