Commission VI Of The House Of Representatives Appreciates The Performance And Supports The Increase In The Budget Of The Ministry Of Cooperatives And SMEs To IDR 3 Trillion

JAKARTA - The Ministry of Cooperatives and SMEs (Kemenkop UKM) received full appreciation and support from Commission VI of the DPR RI to carry out priority and strategic programs in the development of cooperatives and MSMEs in Indonesia, with the increase in the 2024 budget ceiling to around IDR 3 trillion, from the previous IDR 1.497 trillion.

"MSMEs have a significant role in the national economy by contributing 61.9 percent of GDP. The Kemenkop UKM needs to receive full support to develop the national MSME sector," said Chairman of Commission VI DPR RI Martin Manurung, during a Working Meeting (Raker) with the Minister of Cooperatives and SMEs (MenKopUKM) Teten Masduki, at the DPR RI Building, Jakarta, Thursday, June 8.

Commission VI of the DPR RI also appreciated the achievement of the performance of the Kemenkop UKM which in the 2022 Fiscal Year (TA) was able to realize a budget of up to 94.17 percent.

Commission VI of the DPR RI also encourages the Kemenkop UKM to be able to improve performance performance and budget absorption in 2023.

Meanwhile, a member of Commission VI of the Indonesian House of Representatives from the Golkar Party faction, Budi Setiawan, said that the Ministry of Cooperatives and SMEs' budget was still relatively small because they had to manage and empower more than 64.2 million MSME actors.

"The business is a lot, but the budget is small, many MSMEs have not felt the convenience, guidance, and facilitation of the Kemenkop UKM," said Budi.

With the characteristics of heterogeneous MSMEs and representing the local wisdom of each region, Budi suggested that the Kemenkop UKM need to strengthen and sharpen collaboration programs with other ministries.

"In order for the public to feel the presence of the Kemenkop UKM, programs are needed that can attract participation and collaboration from other parties," he said.

Budi gave an example of the Rumah Kemasan program, the Joint Production House, and the Revitalization of the People's Market which can be collaborated with other ministries/agencies, such as the Ministry of SOEs, the Ministry of Trade (Kemendag), and so on.

In addition, it can also have a participatory effect from the private sector. For example, to increase the production house together, Rumah Kemasan, and others. "The program is good, it's just a matter of expanding its reach," he said.

In line with Budi Setiawan, a member of Commission VI of the Indonesian House of Representatives from the PDIP faction, Haris Turino, also supports the addition of a budget ceiling for the Kemenkop UKM to Rp3 trillion.

"We support the Rumah Kemasan program, which MSMEs will be helped. So far, MSME product packaging is not competitive, so it is difficult to market it in modern markets," he said.

According to Haris, the plan to establish seven Packaged Houses is very good as a first step.

However, it is still not enough to be able to reach all MSMEs in Indonesia.

"In addition to Packaging Houses, the Ministry of Cooperatives and SMEs can also encourage medium-sized businesses to become offtakers, so that they can help MSMEs enter modern channels," he added.