Separation Of The Ministry Of Cooperatives And MSMEs Encourage Micro Enterprises To Advance Class Faster

Illustration (Photo: Doc Antara)

JAKARTA - Member of Commission VII DPR RI Siti Mukaromah is optimistic that micro, small, medium enterprises (MSMEs) will advance to small and medium industries (IKM) faster with the separation of the Ministry of Cooperatives and the Ministry of MSMEs.

Siti, in a press release in Jakarta, Friday, said that with the separation of the Ministry of Cooperatives and the Ministry of MSMEs, as well as strong synergies between the Ministry of MSMEs and the Ministry of Industry, attention to MSMEs will be more focused.

He argues that synergies also need to be built between the executive and the legislature in providing protection for MSMEs, as well as creating a conducive business ecosystem for MSME growth.

"It takes commitment with stakeholders, including MSMEs and industry players. Seriousness, assistance. Then regulations must side with MSMEs, in addition to implementation that must be guarded," he said.

According to him, currently MSMEs are still one of the pillars of the Indonesian economy. MSMEs have also proven to be industries that are able to survive in crisis situations and become one of the solutions to reducing unemployment.

Data from the ASEAN Investment Report 2022 shows that MSMEs have a very important role in the Indonesian economy.

Around 65.5 million MSMEs contributed 60 percent to gross domestic product (GDP) and absorbed 97 percent of the total workforce. This figure will strengthen in 2023 with the number of MSMEs reaching around 66 million and contributing 61 percent to GDP.

Despite its great potential, MSMEs, according to him, still face a number of challenges, such as access to capital, fulfillment of business legality, product innovation, and marketing.

However, with the support of the government and various stakeholders, these challenges are expected to be overcome.

He added that the aspects of regulation and implementation are also important. For example, in the context of marketing, MSMEs need to adapt to the digital era by adopting digital marketing strategies.