Sri Mulyani: Want To Save MSMEs? Buy Indonesian Products!

Minister of Finance, Sri Mulyani. (Photo: Instagram @smindrawati)

JAKARTA - The government has prepared various stimuli to save micro, small and medium enterprises (UMKM) amidst the economic turmoil due to the impact of COVID-19. As the backbone of the national economy, MSMEs contribute up to 60.34 percent of GDP.

Minister of Finance Sri Mulyani said that encouraging MSMEs to rise from the downturn caused by the pandemic is not only the task of the government, but the task of all Indonesian people.

"Everything is important, so don't just think that the government is responsible, everyone can support how MSMEs can revive," he said, in a virtual discussion, Wednesday, August 19.

The state treasurer said that the public could help MSMEs rise by buying domestic products. In the midst of a crisis due to a pandemic, he said, solidarity must be increased.

"Buying food near your house, staying at hotels, and whatever is the social solidarity that we have to be able to help MSMEs recover," he said.

Why do MSMEs need help? https://t.co/wqxBlle3mv

- Fiscal Policy Agency (@BKFKemenkeu) August 19, 2020

As a parable, if 260 million Indonesians are moved to contribute, it can help the small economy move. The simplest example is buying food from traditional stalls such as Warung Tegal or Warteg.

"If you do more innovative thinking with your designs, buy something from Warung Tegal that's close to your place," he said.

Sri said, especially for MSMEs, the government has provided a lot of support, credit subsidies, and credit guarantees.

"For MSMEs, we also provide interest subsidy support, guarantees, all of which are provided by the government. To revive MSMEs, it requires the support of all (parties)," said Sri Mulyani.

Most recently, the government is also preparing additional assistance for MSMEs. President Joko Widodo (Jokowi) will launch assistance of IDR 2.4 million for MSMEs. This assistance will be given to 12 million MSME players.

However, at the initial stage it has already been allocated for 9.1 million recipients with a total budget of IDR 22 trillion. Meanwhile, grant funds are only given to MSME actors who have never received or received loan assistance or the like from a bank (unbankable).