Debt Elimination Can Make MSMEs Reborn

JAKARTA - Deputy Speaker of the House of Representatives Cucun Ahmad Syamsurijal welcomed the policy of eliminating debt for MSMEs, fishermen and farmers. According to him, this policy will make sluggish MSMEs grow again.

"The abolition of this debt will certainly have a positive impact, MSMEs can reborn (grow again) so that it will help our economic growth," said Cucun, Thursday, November 7.

As is known, this debt abolition policy is contained in Government Regulation (PP) Number 47 of 2024. The regulation contains the elimination of bad debts for MSMEs in agriculture, plantations, livestock, fisheries, and marine sectors, which are already on the list of book erasers by the state-owned banks (Himbara).

Cucun said the policy taken by President Prabowo Subianto was the right step.

"In the midst of the many layoff storms that have recently occurred and the dynamics of the economy is full of challenges, MSMEs can become social safety nets," he said.

"So that the elimination of debt for MSME players and community groups in the real sector such as farmers and fishermen can protect the Indonesian economy," continued Cucun.

Based on information, there will be around 1 million MSMEs registered in the deletion of bank books. The average amount of debt that was deleted was around a maximum of IDR 500 million for business entities and IDR 300 million for individuals with a tenor of 10 years.

According to Cucun, maintaining MSMEs from financial difficulties also means maintaining the wheels of the country's economy. Because MSMEs have a fairly dominant role in the national economy because they managed to contribute about 99% of the total business units in Indonesia.

"In addition to opening up many jobs and contributing to GDP, the existence of MSMEs will also turn the wheels of the economy in an area. And when the region progresses, people's welfare will increase so that intervention is needed for MSMEs who are slumping," said Cucun.

Cucun reminded the importance of assistance for MSMEs whose debts were abolished. Because, said Cucun, the elimination of this debt is a short-term solution for the progress of MSME businesses.

Continuous support must still be carried out so that MSME actors can rise again. For example, with financial education so that they are not again entangled in debt," he said.

Cucun said that financial training is expected to maximize the potential and independence of MSME businesses. The government can collaborate with related institutions to provide guidance and counseling to business actors regarding the financial management system.

"The abolition of debt can indeed help MSME players for a while, but without being accompanied by a long-term strategy, this policy will only provide temporary assistance," said Cucun.

"We need policies that ensure that MSMEs are not burdened with bad debts in the future. Assistance is also needed for the sake of empowering their business," he continued.

In addition to being given knowledge and training about financial management, MSME players are considered important also to be given technology training. Because innovation and creativity in every industry are needed to advance business.

"Training in the latest digital and technological marketing that is relevant is needed by MSMEs. This support is very important to encourage increased efficiency and competitiveness of MSMEs in a wider market," explained Cucun.

By increasing skills and qualifications, it is believed that Indonesian MSMEs can expand their wings to the global market.

"Not a few of our MSMEs are not only successful domestically, but can export their products abroad. This is what we must encourage," said the legislator from the West Java II electoral district.

Cucun also highlighted the issue of Indonesia's achievement as the second-largest ranking country in the world. Even Indonesia itself has succeeded in producing 2,306 tons.

One of the successful MSME actors is a farmer named Muh Khoirul Soleh who started a cultivation effort from scratch to successfully export his cultivation products to the African continent.

"There are so many examples of MSMEs that can market their products abroad. But we are aware that the Covid-19 pandemic and the dynamics of the global economy have also narrowed some of our MSMEs. So there needs to be a breakthrough for our MSMEs," explained Cucun.

On the other hand, Cucun encourages MSME players and farmers to become more independent.

Indonesia has many entrepreneurs who were born from MSMEs. I am sure that with the potential that Indonesian MSME players have, assisted by support from the state, our MSME world will bring a lot of progress to the national economy," he explained.

Cucun added, the more MSMEs grow, the more people will benefit. Because as an economic motorbike, MSMEs can help Indonesia grow.

"When economic growth is good, the state can improve facilities for the community. Both educational facilities, health, infrastructure, and various improvements to the social aspect," concluded Cucun.