The Government Is Targeting Zero Percent Poverty In 2024

Illustration (Photo: Doc. Antara)

JAKARTA - The government through the Ministry of Cooperatives and SMEs targets the extreme poverty rate to reach zero percent by 2024 through a number of efforts.

The target is a follow-up to Presidential Instruction (Inpres) Number 4 of 2022 concerning the Acceleration of the Elimination of Extreme Poverty, through the provision of access facilities for financing, market access, as well as assistance and training for cooperatives and micro-enterprises, in increasing the income of extreme poor families.

Deputy for Micro Business at the Ministry of Cooperatives and SMEs Yulius through a statement in Jakarta, Tuesday, said that efforts to eliminate extreme poverty were not carried out directly to the extreme poor, but was carried out indirectly to the community of micro-business actors, namely by group approaches, clusters or those who are members of the cooperative forum.

"The business of the community empowerment process in priority areas of extreme poverty starts from the coordination stage with the Coordinating Ministry for Human Development and Culture, other K/L according to Presidential Instruction Number 4 of 2022, as well as other stakeholders. Next is mapping priority locations, in this case it is prioritized in 48 districts/cities in 8 provinces, the selection of targets for this location is adjusted to the poverty rate and local potential at that location," Yulius said as quoted by Antara, Wednesday, January 11. The next step is assistance and training, as well as facilitation of access to market financing and facilitation access, as well as the last stage is monitoring and evaluation of activities. An outline of the form of coordination and collaboration in the Community Empowerment Measurement in the Extreme Poverty Priority Area includes Coordination in the Internal Unit Echelon 1 of the Ministry of Law and related Ministries/Institutions, namely the Ministry of Manpower, Industry, Trade, Tourism, Agriculture, Fisheries and Maritime Affairs, Investment, and others.

There is also a mentoring and training stage carried out in coordination with PLUT-KUMKM, Business Incubator, Transfumi Guard, Bds/P, KKMB, Regional KUMKM Assistance, and so on.

Meanwhile, in terms of facilitating access to financing, it is carried out through KUR and Program Credit, PKBL/CSR, LPDB-KUMKM Revolving Funds, banking commercial loans, venture capital, Mekar, Ulam, and other financing.

Market access is carried out with marketing services through LLP-KUMKM (Square and Medium Enterprises Market Marketing Service Institute), traditional market revitalization, domestic and foreign market access, online and offline markets, resellers, off takers, and so on.

"The monitoring and evaluation process will be carried out through an online web-based system," said Yulius.

Then related to technical assistance, starting from improving business institutions by providing institutional formalization and business licensing, increasing access to financing through KUR and Program Credit, PKBL/CSR, LPDB-KUMKM Reviling Funds, commercial banking credit, venture capital, krista, ulam, and other financing.

Then there is an increase in productivity through the availability of raw material suppliers, the development of joint production houses, production mechanization, package houses, product standardization/certification, and distribution line development.

Finally, from this stage it will have an impact on increasing capital and business volume so that the resulting output is that MSMEs rise to Classes.

According to Yulius, the impact of this program on the Acceleration of the Elimination of Extreme Poverty is the creation of the work environment, increasing income and welfare of business actors and the community, and eliminating extreme poverty.