Sri Mulyani Raises The Role Of MSMEs In ASEAN Economic Resilience

Photo: Doc. Ministry of Finance

Minister of Finance (Menkeu) Sri Mulyani Indrawati assessed that micro, small and medium enterprises (MSMEs) have an important role in growing the ASEAN economy.

According to him, MSMEs in the ASEAN region absorb 35-97 percent of the workforce and contribute 35-69 percent of gross domestic product (GDP) in each country. It is stated that MSMEs must be able to adapt and integrate themselves into the digital economy.

"The digital economy has even become a game changer for the economy of a number of countries", he said in a written statement while attending a series of ASEAN Chairmanship agendas in Bali, Wednesday, March 29.

The Minister of Finance explained that a number of ASEAN countries were recorded as still having a low financial inclusion index. Therefore, he emphasized the importance of taking strategic steps by intensifying inclusion and financial literacy as well as accelerating digital finance for MSMEs.

The Minister of Finance added that financial inclusion and literacy for MSMEs is useful in developing business capacity and expanding market access. He also considered that one form of digitalization that greatly affects MSMEs is an electronic payment system.

"Even so, digitalization cannot be separated from the accompanying risks, so a policy mix framework is needed so that the digital ecosystem can run optimally, favorably, easily accessible, cheaply, and safely," he said.

State treasurers are optimistic that through strong cooperation and policy frameworks as well as good coordination, MSMEs in ASEAN can grow optimally.

"This further accelerates the achievement of ASEAN's ideals as the epicenter of world economic growth," he concluded.