The Development Of MSMEs Is A New Way For The Government To Remove Poverty

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA - The government through the Coordinating Minister for the Economy Airlangga Hartarto said that extreme poverty alleviation has become the focus of the state to be handled better.

According to him, one of the ways that is now being taken is through the campaign for micro, small and medium enterprises or MSMEs.

"MSMEs are the government's prima donna in supporting national economic resilience because the amount is very large, namely 64.19 million in 2021 and has contributed to gross domestic product (GDP) of up to 61.07 percent or Rp. 8,574 trillion," he said in an official statement quoted on Tuesday, October 4.

Airlangga added that the government has made a number of efforts to be able to encourage the progress of MSMEs. The one thing that is most new is through the implementation of Law Number 11 of 2020 concerning Job Creation which has provided convenience, protection, and empowerment for MSMEs.

"We also provide people's business loans (KUR) whose ceilings for MSMEs continue to increase according to the President's direction to 30 percent in 2024," he said.

In order to continue to accelerate poverty alleviation, the government is said to have signed a memorandum of understanding with the Indonesian Chamber of Commerce and Industry (Kadin) regarding the Acceleration of the Elimination of Extreme Poverty.

Airlangga said, this is useful in providing convenience in identifying, planning, and piloting regions so that they can produce data related to the Acceleration of Extreme Poverty Elimination (P3KE) which will be used as a reference in targeting the CSR (Corporate Social Responsibility) program or the TJSL (Social and Environmental Responsibility) program.

Meanwhile, to alleviate extreme poverty around the company's location, CSR is calculated by the government with a minimum projection to be in the same district/city as the company's location.

"With this system, of course Kadin can implement it with existing pilotes and according to the President's direction to be replicated, for that the Government appreciates Kadin's initiative and then can ask for further directions from the President," he said.

Previously, President Jokowi gave directions so that all parties can collaborate to solve various concrete problems as well as extreme poverty alleviation.

In addition, the Head of State also advised that assistance can be provided related to community commodity businesses to encourage optimal results through these partnership movements.

"If this can work, I believe it can have an effect on extreme poverty which will be handled quickly and well," said the President.