Awesome! President Jokowi: G20 Must Encourage The Strengthening Of MSMEs And Women's Role

Indonesian President Joko Widodo talks with a number of G20 leaders at the G20 Summit, in La Nuvola, Rome, Italy, Saturday, October 30. (Photo of HO-Press Bureau of the Presidential Secretariat)

JAKARTA - Indonesian President Joko Widodo (Jokowi) said the G20 countries must continue to encourage the strengthening of the role of MSMEs and women through a number of concrete actions.

This was conveyed by the President during a speech at the side event of the G20 Summit which discussed the issue of MSMEs and women-owned businesses, in La Nuvola, Rome, Italy, Saturday (30/10), according to a press release received in Jakarta, Sunday morning.

"(Real action) First, increasing the financial inclusion of MSMEs and women. Financial inclusion is Indonesia's priority. Our financial inclusion index has reached 81 percent and we are targeting to reach 90 percent by 2024," explained President Joko Widodo.

To achieve this, said President Joko Widodo, friendly financing and access to funding for MSMEs in Indonesia will continue to be strengthened. He said that Indonesia allocated 17.8 billion US dollars for people's business loans (KUR) and more than 2.4 million women entrepreneurs had received this assistance.

In addition, President Jokowi said that Indonesia also launched US$1.1 billion for the Productive Micro Business Program and 63.5 percent of this was received by women entrepreneurs.

Especially for micro and ultra-micro women entrepreneurs, Indonesia has developed a special capital scheme called the Mekar program "Building a Prosperous Family Economy".

"In English, Mekar means to grow, to blossom. It symbolizes the spirit for the growth and development of women's economic roles," he said.

President Jokowi explained that to date, there are more than 10.4 million customers with a total financing of 1.48 billion US dollars and a very low non-performing loan, only 0.1 percent. This proves the ability of women entrepreneurs who are qualified in managing funds.

The second real action is to support the economic transformation of MSMEs. According to President Jokowi, digitalization is a key enabler.

Lokapasar or e-commerce is one of the drivers of the Indonesian economy during the pandemic with a value that will reach 24.8 billion US dollars this year. "During the pandemic, 8.4 million Indonesian MSMEs have entered the digital ecosystem, including 54 percent of female MSMEs," said the President.

Furthermore, President Jokowi said that the G-20's alignment must be real for the digitization of MSMEs and women. The support is in the form of digital infrastructure development and technology cooperation, inclusive expansion of digital connectivity, and increasing digital literacy of MSME actors.

"The transformation of MSMEs will be stronger if they are supported by these strategic policies. We in Indonesia continue to make various efforts to support MSMEs such as SOE partnerships with MSMEs, ease of business permits, support for business incubation, strengthening cooperatives, and others," he explained as reported by Antara.

These strategic steps have brought tangible results, namely, the Indonesian economy grew 7.07 percent in the second quarter of this year. In addition, the poverty and unemployment rates began to decline and the value of exports grew 37.7 percent.

"With the continuous improvement of the pandemic situation in Indonesia, the positivity rate is below 1 percent, the first dose of vaccination reaches 53.62 percent, and the complete dose of vaccination reaches 31.50 percent, God willing, Indonesia's economic recovery will continue. together and sustainably. Recover together, recover stronger," he explained.

Foreign Minister Retno Marsudi in her statement explained that at the event President Jokowi was one of the four invited speakers besides Italian Prime Minister Mario Draghi, Queen Maxima from the Netherlands, and German Chancellor Angela Merkel. "Empowering MSMEs and women is a central policy in accelerating the achievement of SDGs in Indonesia according to the President," said the Foreign Minister at the Splendide Royal Hotel, Rome.