JAKARTA - Coordinating Minister for Economic Affairs Airlangga Hartarto said that the Government continues to strive to maintain purchasing power and business competitiveness, through a number of Economic Stimulus Packages aimed at low-income households, the middle class, and also the business world.
In addition, Airlangga said that people's purchasing power is still relatively strong, as reflected in the BI Consumer Confidence Index (IKK) in November 2024 which was recorded at 125.9. In line with the optimistic IKK, the latest data from NielsenIQ shows that Indonesians are increasingly fond of shopping with total spending in the third quarter of 2024 reaching IDR 256 trillion.
Airlangga said that the Government also continues to encourage the empowerment of MSMEs and cooperatives as drivers of the people's economy.
Therefore, Airlangga explained that it is necessary to strengthen human resources through the adoption of technology, and improve governance to increase the competitiveness of cooperatives in the national economic ecosystem.
"Of course we really hope that cooperatives can continue to move to encourage economic growth and also encourage the productive sector in accordance with the mandate of the Cooperative Law," said Airlangga in his statement, Friday, December 20.
Currently, most of the cooperative business fields come from the financial services sector at 66 percent and trade around 17 percent, while the real sector such as agriculture, plantations, animal husbandry, and fisheries are still minimal.
Airlangga said that therefore optimization of the production sector is needed to increase the volume of cooperative businesses.
"The production sector is expected to employ many people and of course the production sector can increase the supply of goods domestically. We hope that the proportion of industry or producers from DEKOPIN, the parent cooperative, will increase. The number of entrepreneurs, the direction of the President, must be encouraged to move up a class and one of the sources is of course from DEKOPIN," he said.
Airlangga said that the Government is also encouraging easy financing for cooperatives and MSMEs through the People's Business Credit (KUR) program with low interest rates.
As of November 30, 2024, KUR realization reached IDR269.48 trillion, or 96.24 percent of the 2024 target, with the Non-Performing Loan (NPL) rate maintained at 2.19 percent.
In addition, the Government through the Revolving Fund Management Institution (LPDB) at the Ministry of Cooperatives provides access to funding for cooperatives, with real sector distribution increasing from IDR38.7 billion in 2020 to IDR506.2 billion in 2023, growing 960.53 percent.
Airlangga hopes that cooperatives can adapt to the digital industry. Because the digitalization of cooperatives will increase the efficiency and strength of cooperative membership which will be connected not only in terms of the supply chain, but also integrated in a digital network and data, so that basic users will have wide open access.
"I certainly really hope, once again, that DEKOPIN will become a game changer to increase entrepreneurship in Indonesia and especially entrepreneurship for the majority. DEKOPIN continues to grow, continues to be strong, and continues to regenerate, so that cooperative activities can continue to be the root of the national economy," concluded Airlangga.
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