Drive Economic Recovery Through Ultra Micro Business Promotion

Minister of Finance Sri Mulyani Indrawati/ Instagram

JAKARTA - The Government Investment Center (PIP) is holding a “MSME Festival” which presents the majority of ultra-micro business actors receiving Ultra Micro (UMi) financing in Ubud, Bali.

UMi is distributed by the Government Investment Center through the distributor of the Bali Krama Cooperative.

In addition to UMi recipients, this activity also presents MSME players assisted by the Ministry of Finance vertical agency, as a concrete manifestation of "Kemenkeu-One" as a collaboration between Ministry of Finance agencies to jointly encourage economic recovery through expanding marketing opportunities for MSME products.

Minister of Finance Sri Mulyani Indrawati in her speech said that this activity is a form of complete collaboration between units of the Ministry of Finance so that business actors can grow and be able to export.

"In addition to this activity, the Government also provides various forms of assistance for MSMEs sourced from the APBN, in the form of interest subsidy assistance, UMi financing, and loan guarantees so that banks dare to provide loans to MSMEs in the midst of a pandemic," said Sri Mulyani, quoted on Sunday 16 January.

The government also provides technical assistance, such as the Directorate General of Taxes and the Directorate General of Customs and Excise assisting MSMEs through technical units to penetrate the export market.

The MSME products that were held this time showed typical Balinese MSME products, ranging from handicraft products such as woven bamboo skins, coconut shells, ikat and Uang Kepeng, massage oil products, to culinary products, namely cakes, Balinese wine and coffee.

The role of MSMEs, including ultra micro businesses, reached 64.2 million with a contribution of 61.07 percent to Indonesia's GDP. In addition, MSMEs are able to absorb 97 percent of the total workforce and around 60 percent of the total investment in Indonesia.

The Minister of Finance also hopes that COVID-19 will be resolved and the economy will recover again, so that the MSME market share will grow, especially in Bali, whose economy is most affected by the pandemic, due to the very dominant role of tourism.

"The COVID pandemic has taught a lesson, so that Bali can start to diversify its market, don't just depend on tourism. For example, industry or agriculture," added the Minister of Finance. One of PIP's real contributions in helping economic recovery, especially in the province of Bali, which is still feeling the impact of the Covid-19 pandemic.

"Through this activity, it is hoped that more people will be familiar with MSME products, so that in turn they can increase the business turnover of MSME actors," he said.

In addition, by bringing together MSME players from various segments and with a variety of products, it is hoped that new opportunities will open up in the form of supply chains between MSME actors and can further penetrate the export market.

As of the end of 2021, the Government Investment Center has disbursed IDR 18.07 trillion ultra micro loans (UMi) to more than 5.39 million debtors, spread across 34 provinces throughout Indonesia.

In 2022, the Government Investment Center targets the distribution of UMi financing to reach 2 million ultra micro business actors.

Specifically for the province of Bali, the distribution of UMi was carried out by PIP through PT Permodalan Nasional Madani (PNM), PT Pegadaian, Krama Bali Cooperative and UGT Nusantara Cooperative, reaching 15,899 people with a value of Rp. 65.59 billion.