Government Boosts Digital Economy Improvement To Support MSMEs

Coordinating Minister for the Economy Airlangga Hatarto (Photo: Public Relations)

JAKARTA - Coordinating Minister for Economic Affairs Airlangga Hartarto said the government continues to boost the potential of the digital economy in Indonesia to support MSMEs.

Based on 2020 data, there are 64.2 million MSMEs in Indonesia. They also contribute to the Gross Domestic Product (GDP). At least a GDP of 60.51 percent or Rp.9,580 trillion with the ability to absorb 96.92% of the total workforce, and can collect up to 60.42 percent of the total investment.

Thus, the government increased the special budget allocation for MSMEs to Rp. 96.21 trillion with program details in the form of Interest Subsidies, Placement of Government Funds at Partner Commercial Banks to support the expansion of working capital loans and restructuring of MSME loans, Guarantee for MSME Working Capital Loans, Banpres for Productive Micro Businesses. , Cash Assistance for Street Vendors and Stalls, and incentives for Final Income Tax for SMEs borne by the government.

It was recorded that up to October 27, 2021, the total realization of PEN support for MSMEs in 2021 was Rp. 64.35 Trillion with the number of debtors/MSMEs being 33.93 million. In addition, there is also additional support in the form of exemption from minimum accounts, load fees, and electricity subscriptions that can be utilized by MSMEs.

“The Pre-Employment Card Program also helps business actors and prospective business actors to improve their competencies. Based on Implementing Management data, one of the most popular trainings is about sales and marketing," said Airlangga in a written statement, Sunday, November 7. involving private parties including banking and digital financial service companies as payment partners.

Based on the survey results, the majority of Pre-Employment Card recipients said that the Pre-Employment Card training had encouraged entrepreneurship and that the Pre-Employment Card incentives were used for business capital. Even 17 percent of pre-employment card recipients who were previously unemployed have become entrepreneurs. This shows that the Pre-Employment Card has been effective in improving entrepreneurial skills.

In addition, banks have also participated in providing support in economic recovery during this pandemic, including by providing support for credit/financing restructuring programs that can be enjoyed by the business world, including MSMEs.

Various studies state that the potential of Indonesia's digital economy is still wide open. This is supported by a number of factors, including the 4th largest total population in the world, with a population of productive age reaching 191 million or 70.7 percent.

In terms of digital users, the number of Indonesian mobile phone users currently reaches 345.3 million or 125.6 percent of the population with internet penetration of 73.7 percent and internet traffic increasing by 15-20 percent.

"In order to optimize the potential of the digital economy that we have, it is necessary to orchestrate various initiatives and policies through the preparation of frameworks related to the development of the digital economy," concluded Coordinating Minister Airlangga.

With the various potentials that exist, it is hoped that through efforts to develop the digital economy, many breakthroughs and innovations can be created that are able to reach and involve all sectors and actors / drivers of the national economy, including MSMEs. (frh/fsr)