The Government Asks For Expansion Of Capital Access For MSMEs

Illustration. (Photo: Doc. Antara)

JAKARTA - The government is asked not only to help micro, small and medium enterprises or MSMEs to administer the Indonesian National Standard (SNI) certification, but also to regulate a healthy competition ecosystem and expand access to capital.

"The thing that the government needs to do is not only encourage certification, but must at the same time regulate so that the position of business competition is healthy and not monopolized by medium and large businesses. This must be an important priority so that micro and small businesses can develop. In addition, of course, their business capacity development activities, expansion policies for access to capital and others," said cooperative observer and SME Suroto, quoted from Antara, Friday, December 2.

The chairman of the Strategic Socio-Economic Cadre Association (AKSES) said that regulations regarding SNI obligations for MSME products are very important, not only to be able to go global, but also to strengthen positions in the domestic market. Domestic market control will have a lot of economic effects.

"The multiplier effect will be price controller, create more economic added value, provide more jobs and others. Thankfully it can enter the global market as a bonus. POWERing in the domestic market is more important than entering the global market but not selling well in the local market," said Suroto.

Meanwhile, economic observer who is also the Executive Director of the Center of Reform on Economics (Core) Mohammad Faisal said that if the government encourages MSME players to get SNI, the government needs to provide further assistance.

"If MSMEs are encouraged to get SNI, the facilities are given, the incentives are because MSMEs have limitations. The obstacle to SNI certification is costs, this cost must be assisted for MSMEs, especially micro," he explained.

According to him, if micro-enterprises are not provided with assistance or incentives with cheaper certification standards, this business will object, considering that currently it is still in a condition of recovery due to the impact of the pandemic that has not yet ended.

The condition of MSMEs that are still trying to rise plus inflation and the shadow of recession have resulted in increased production costs, continued Faisal, which can make it difficult for business actors to take care of SNI certification and others.

For this reason, he hopes that the government through related ministries/agencies will provide assistance and convenience to MSME actors.

"What is easier to give to MSMEs is proper assistance so that they arrive at the quality of qualifications that deserve SNI," he added.