Minister Teten: MSMEs Are The Key To Village Potential Development

Coordinating Minister for SMEs Teten Masduki (Photo: Kemenkop UKM)

JAKARTA - Minister of Cooperatives and SMEs (Menkop UKM) Teten Masduki emphasized the importance of the existence of MSMEs as a key element in developing and maintaining economic, social and cultural vitalities in villages throughout Indonesia.

"MSMEs are not just business, but a source of economic life and the heart of our entrepreneurial spirit," said Minister Teten in a written statement received by VOI, Thursday, January 11.

Minister Teten said, MSMEs are part of the integral of Gross Domestic Product (GDP), which contributes significantly to national income and also contributes greatly to inclusive economic growth.

MSMEs as drivers of the Indonesian economy are projected to increase to 83.3 million actors in 2034. This is an opportunity for the development of MSMEs to continue to be able to contribute to the Indonesian economy.

"Villages in Indonesia have great potential in developing micro, small and medium enterprises such as natural resources, handicrafts, tourism, agriculture, creative industries, and other extraordinary potentials," he said.

Teten said that his party's commitment was also in line with the development of SMEs in a business cluster. It is hoped that these business clusters can meet the needs of the village and national needs.

"Currently, the Ministry of Cooperatives and SMEs is developing joint production houses in 10 regions of Indonesia. There is professional management from upstream to downstream in joint production houses," he said.

Regarding the contribution of MSMEs in the development of villages in Indonesia, Teten expressed his appreciation to BRI for its commitment to empowering villages throughout Indonesia continuously through the BRILiaN Village program.

Throughout 2023, BRI empowers 3,178 villages throughout Indonesia with four pillars supporting the BRILian Village Program, namely mobilizing Village-Owned Enterprises (BUMDes) as village economic motors, digitizing villages with penetration of digital products and driving activities, encouraging innovation in villages and building sustainability and resilience in developing villages.

On the same occasion, BRI President Director Sunarso said the BRILiaN Village program also increased the level of financial inclusion in villages. It was noted that BRI savers rose 47.7 percent, bringing the total to 32 million people who have BRI savings accounts.

"Even from this program, BRI's DPK also rose to 29.9 percent or reached more than Rp6 trillion. Credit customers rose 26 percent. A total of 177,000 people who previously did not dare to take credit currently dared to take credit, the value of village loans reached more than Rp16.1 trillion. Then BRILink's Agent also reached more than 700 thousand agents in the village," he said.