Indonesian MSMEs Lose Products To Malaysia And Thailand, How Can It?

Illustration. (Photo: Doc. Between)

JAKARTA - The Institute for Development of Economics and Finance (Indef) noted that the export rate of Micro Small and Medium Enterprises (MSMEs) products in Indonesia is still stagnant at 19 percent. In fact, the figure has not increased definitively over the past few years.

Indef Deputy Director Eko Listiyanto said that compared to Asean countries, Indonesia still lags far behind. The percentage of micro-business products in Malaysia stands at 20 percent. While Thailand is close to 30 percent.

"Seen productively, from such exports, Indonesia is still lagging behind Malaysia and Thailand. About 15 percent of MSMEs share for export, that Malaysia is close to 20 percent. While Thailand is close to 30 percent," he said in a virtual discussion, Monday, May 10.

According to Eko, one of the fundamental factors driving the performance of Malaysia's micro-enterprises is ecosystem development efforts. Where, local authorities strengthen the level of financing and coaching for businesses.

"So we are far behind, so I am interested to see what Thailand and Malaysia are like in building MSMEs so. One of them is if Malaysia builds an ecosystem for MSMEs, so both in the level of financing and coaching, it is also done intensively," he said.

Eko said, for the support provided, it is natural that Malaysian MSMEs are able to move up the class and expand their business to the export realm.

In fact, Eko continued, the credit aspect became another instrument of the development of Malaysian MSMEs. In Malaysia, the bank loan rate is at the level of 50 percent. That percentage is up significantly when compared to previous years.

Meanwhile, according to Eko, indonesia is still at the level of 19-20 percent. Eko assessed that financing support for MSMEs was able to boost its business performance.

"If we look, this specification in terms of credit and financing support. Financing support in Indonesia is very flat, this is about 19-20 percent. From year to year that's not going up, so there has to be a breakthrough, if not, this is very lagging," he explained.

Nevertheless, Eko does not deny, the efforts to transform the Ministry of SOEs by presenting Ultra Micro Holding is considered the right step to make the wheels of MSMEs resonate.

The holding is a synergy between SOEs namely PT Bank Rakyat Indonesia (Persero) Tbk, PT Pegadaian (Persero), and PT Permodalan Nasional Madani (Persero) or PNM.