The Ministry's Budget Remains IDR 937.1 Billion In 2025, Menkop UKM: This Is Controversy

Menkop UKM Teten Masduki (Photo: Theresia Agatha/VOI)

JAKARTA - Commission VI of the Indonesian House of Representatives summoned the Minister of Cooperatives and SMEs (Menkop UKM) Teten Masduki to hold a working meeting (Raker) at the Parliament Complex, Senayan, Jakarta, today.

Dalam Raker tersebut, Komisi VI DPR RI menyampaikan bahwa pagu indicative Kemenkop UKM untuk tahun 2025 tidak mengalami penambahan atau tetap sebesar Rp937,1 miliar.

"Commission VI of the DPR RI approved the budget allocation of the Ministry of Cooperatives and SMEs of the Republic of Indonesia for Fiscal Year 2025 in accordance with the Letter of the Budget Agency (Banggar) of the DPR RI Number: B/11277/AG.05.02/09/2024 dated September 10, 2024 regarding the submission of the results of the discussion of the State Budget Bill for Fiscal Year 2025 amounting to Rp937.1 billion," said Deputy Chairman of Commission VI DPR RI Aria Bima in a Working Meeting with Commission VI DPR RI at the Parliament Complex, Senayan, Jakarta, Wednesday, September 11.

The budget will be used for management support, which was originally Rp330.6 billion to Rp388.2 billion. Then for the MSME and Cooperative Entrepreneurship program, which was originally Rp606.5 billion to Rp548.9 billion.

It is known, the distribution of ceilings per organizational unit includes the allocation of the Deputy for Cooperatives of Rp68.5 billion. Then, for the Deputy for Micro Enterprises amounting to Rp67.3 billion.

On the same occasion, Coordinating Minister for SMEs Teten Masduki said that the absence of additional budget for the ministry he led was controversial.

In fact, said Teten, MSMEs are the backbone of the national economy. This is because MSMEs provide 97 percent of jobs in the country.

"What do you want to do? Yes, indeed if this is a controversy, yes. MSMEs that are the backbone of the economy also provide 97 percent of employment in Indonesia," he said.

According to Teten, with a budget below IDR 1 trillion, later the targets at the Kemenkop UKM will be very difficult to achieve, especially to help micro-enterprises advance to class.

"Well, to deal with MSMEs, if the budget is below Rp. 1 trillion, yes, I think as Minister of Cooperatives it's hard, it's not playing," he said.

Based on VOI records, the Ministry of Cooperatives and SMEs proposed an additional budget of IDR 665 billion for next year.

This was conveyed by Minister Teten in a working meeting with Commission VI of the Indonesian House of Representatives, Monday, June 10.

Teten said the proposed additional budget would be used to improve the implementation of the ministry's activity program.

"We plan to propose an additional Rp665 billion budget which will be allocated for program implementation or activity to increase target targets," he said.

Then, during the Working Meeting on Wednesday, September 4, Deputy Chairman of Commission VI of the Indonesian House of Representatives, Mohamad Hekal, approved the proposed addition of the Ministry of Cooperatives and SMEs budget for 2025 amounting to Rp665.02 billion.

The funds will be used to meet the needs of priority and non-priority activities that have not been accommodated in the 2025 budget ceiling.

"Ini di Kementerian Koperasi tidak mengajukan tambahan, ya? Masih masih mau kami upaya enggak? Kalau begitu tambahin satu poin lagi, ya?" kata Hekal.

"Commission VI of the DPR RI has approved the proposed additional budget for the Ministry of Cooperatives and SMEs of the Republic of Indonesia for the 2025 Fiscal Year of IDR 665.02 billion," he said.