Deputy Minister Of Finance Suahasil Explains The Role Of MSMEs In Restoring The Economy At The G20 Forum

Deputy Minister of Finance Suahasil Nazara. (Photo: Screenshot of G20 virtual channel)

JAKARTA - Deputy Minister of Finance (Wamenkeu) Suahasil Nazara believes that one of the important keys to Indonesia's economic recovery is to encourage Micro, Small and Medium Enterprises (MSMEs). According to him, this effort is in line with the momentum of economic recovery which must be maintained and continued even though it is still in the midst of the COVID-19 pandemic.

"We will carry out Indonesia's economic recovery by encouraging micro and small businesses. At the same time, ensuring the absorption of labor to distribute greater income to the community from business activities, public consumption, the business world, investment, and also from activities that encourage exports. ," he said through a virtual channel in one of the seminars at the G20 forum, Thursday, February 17.

The Deputy Minister of Finance added that the State Budget as a fiscal instrument will continue to be responsive and flexible as well as anticipatory in facing various risks of uncertainty due to the pandemic.

"The state budget will also continue to provide support for MSMEs," he said.

Meanwhile, one form of support provided is by assigning the Government Investment Center (PIP) to run various programs that support MSMEs.

"Today, we discussed the UMi program (ultra microfinance) in which 90 percent of the recipients are women's business groups. I am very happy to see this performance, I want the number of 5.4 million UMi recipients to be increased," he said.

Furthermore, the representative from Sri Mulyani requested that all parties continue to cooperate with various agencies and carry out innovations, such as encouraging aspects of digitalization.

"Opening the digitalization aspect is not only to facilitate all kinds of activities, but also to encourage increased participation in UMi," he said.

In addition to encouraging access to capital, the government is also called the Deputy Minister of Finance to provide tax incentives which include income tax exemptions for a turnover of Rp. 500 million in the Law on Harmonization of Tax Regulations.

"The government through the Ministry of Finance will definitely continue to build synergies and improve access to financing for micro and small entrepreneurs, especially women," he said.

Furthermore, the Deputy Minister of Finance hopes that various collaborations between PIP and the Ministry of Cooperatives and MSMEs can have an optimal impact on fostering, monitoring, identifying potential cooperatives, as well as optimizing the role of extension workers in the field.

"I hope that this expansion of financing can further realize the target set by the President so that MSMEs will receive a portion of 30 percent of all bank loans," concluded Deputy Minister of Finance Suahasil.