JAKARTA - Investment Minister Bahlil Lahadalia said the development of micro, small and medium enterprises (MSMEs) in the country is still hampered. According to him, this is due to a lack of support from the government and banks.
Furthermore, Bahlil said that due to the lack of support for MSME actors, a large number of these business actors are still in the informal sector.
"It turns out that 53 percent of the total MSME business units are still informal. So the absolute requirements that banks want cannot be fulfilled," he said in a virtual discussion, Monday, June 14.
Therefore, Bahlil said that the presence of the Investment Ministry was not only tasked with managing large and foreign businesses. However, also to support the development of SMEs. He said, the government must continue to strive so that the total portion of credit for MSMEs can reach 30 percent in 2024.
Furthermore, Bahlil said that no matter how great the creativity of MSMEs is, they are not supported by affirmative policies in financing. So, he said, the development of MSMEs will not be maximal.
"I don't think it can be optimal," he said.
From the data received in 2019, Bahlil said, total loans were recorded at Rp. 6,000 trillion. Meanwhile, of this amount, IDR 5,700 trillion is for domestic investment loans and IDR 300 trillion for overseas.
Meanwhile, of the Rp5,700 trillion portion of domestic investment credit funds, specifically for MSMEs, no more than Rp1,127 trillion or 18.2 percent.
Therefore, said Bahlil, the government is implementing the Job Creation Act to provide easy licensing, free halal certification fees and a number of other conveniences. This is expected to help encourage MSMEs from informal to formal businesses.
"Our task at the Ministry of Investment at the direction of the president is how this informal can be formalized. Now, with the presence of the Job Creation Law, MSMEs are really given a red carpet," he explained.
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