Teten Masduki: The Transformation Of MSME Digitalization Must Be Accelerated

JAKARTA - Minister of Cooperatives and SMEs Teten Masduki said that the COVID-19 pandemic situation has depressed micro, small and medium enterprises (MSMEs). Even so, there are some MSMEs that can still survive because they are connected to the digital ecosystem.

However, Teten said, currently only about 13 percent or 8 million business actors are connected to the digital ecosystem. Meanwhile, around 87 percent still use the offline system. In fact, according to Teten, MSMEs that take advantage of the marketplace are better able to survive amid the sluggish economy.

"MSMEs are hit from two sides, namely supply and demand. It is predicted that after September there will be half of the MSMEs that will collapse. This is what we must anticipate immediately," he said, during a virtual discussion with Infobank, Thursday, June 25.

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Furthermore, Teten said, to save MSMEs, the transformation of digitization must be accelerated. Not only for market access, but also to make it easier for MSMEs to access financing.

"From this data, we must accelerate the transformation of digitalization. If MSMEs are asked for assets as collateral (loans), it must be heavy. But if there is digital data regarding financial health, business smoothness, it can be a material for banks to consider disbursing financing," he explained.

According to Teten, the government has also prepared a national economic recovery policy, including UMKM. The main program is relaxation of loans with a six month installment delay, credit subsidies, tax abolition, and the provision of new, cheaper working capital.

"Economic growth in Indonesia in 5 years has grown by 5 percent. This is supported by government spending and public consumption above 50 percent. The social assistance program disbursed to the public, through financing institution mechanisms, should be able to restore the economy," he said.

As is known, the government has budgeted IDR 735 trillion to spend on UMKM products. This has been coordinated with the Government Procurement Policy Institute (LKPP).

"We raised it at cabinet meetings. Now e-catalogs and special pages for MSMEs at LKPP are prepared. We also conduct training to the ministries to compile procurement packages (UMKM products)," he explained.

Teten believes, if Rp735 trillion of this budget flows for spending on MSME products, the economy of the MSME sector will start to revive.