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Make UMKM a New Source of Economic Growth

by Detiktoday
October 13, 2020
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Detiktoday.com – Deputy Chairman of Commission XI of the Indonesian Parliament Eriko Sotarduga said that MSMEs are the backbone of the domestic economy, therefore it needs to be encouraged to become a new source of economic growth. Three key things that must be taken in the development of MSMEs are increasing the added value of UMKM products, digitizing MSMEs, and synergies.

“In this Covid-19 pandemic, MSMEs are the sector that has been hardest hit because of the large number of PSBB (Large-Scale Social Restrictions). In this regard, Commission XI of the Indonesian House of Representatives wants to get information about the steps taken by Bank Indonesia to revive MSMEs amid the pandemic Covid-19 is currently in West Java province, “said Eriko while leading the Commission XI DPR RI Working Visit Team to West Java Province, Monday (12/10/2020).

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He said, UMKM digitization can be achieved by utilizing digital platforms, especially for online marketing and digitizing payments. On the marketing side, he continued, Bank Indonesia has implemented an onboarding program for MSMEs by involving assisted MSMEs and partners. “This program is one of Bank Indonesia’s efforts in developing the capacity of MSMEs, especially related to digital literacy of MSMEs,” he explained.

On the same occasion, Eriko also said, to overcome the impact of Covid-19 on the economy, the Government has launched the National Economic Recovery Program (PEN). The program is aimed at restoring Indonesia’s slowing economy, in which economic growth in the first quarter of 2020 was positive 2.97 percent and the second quarter of 2020 was negative 5.32 percent.

“During the implementation of the National Economic Recovery Program, there have been restructuring of bank credit totaling 6.59 million debtors as of June 29, 2020 or Rp. 740.79 trillion. Of these 5.29 million debtors are micro, small and medium enterprises (MSMEs) or equivalent Rp. 317.29 trillion. The government is also implementing further economic stimulus policies related to the provision of interest subsidies for bank debtors and finance companies, “he explained.

Meanwhile, answering various questions from board members, Bank Indonesia stated that BI is trying to encourage the use of electronic money and the implementation of the Quick Response Code Indonesia Standard (QRIS), which makes digital transactions easier. These programs will continue to be encouraged in 2021 to increase the digital literacy of MSMEs and increase the number of UMKM go digital and then increase to go global MSMEs.

The various MSME development programs carried out by Bank Indonesia were formulated in a comprehensive strategy for MSME development covering three important aspects, namely, the formation of economic clusters or groups (corporatization); capacity building for both production, finance and marketing; as well as expanding access to finance and financial literacy.

Bank Indonesia itself has long been implementing the development of MSMEs, given the large role of MSMEs in the national economy. These efforts to develop MSMEs are getting stronger during the Covid 19 pandemic and are carried out by paying attention to increasing the added value of MSME products, digitizing MSMEs, and implementing synergistic activities.

In the context of developing UMKM, there is a policy transformation to make UMKM a national economic strength. In this policy transformation, there are four important aspects, namely policy synergy, integration of digital economy and finance, prioritization, and education and literacy.

These four aspects are directed at targeting the creation of economic and financial inclusion, by involving various sources of funding, including social funds, government, state-owned enterprises, banks and the public, as well as involving various management institutions.

During the Covid-19 pandemic, MSMEs were encouraged to be more adaptive and have attitudes in facing the new normal era, with opportunities for increased demand from both domestic and abroad with new health standards, as well as stronger public preferences for digital economic and financial transactions.

Tags: aamericaamericanartaustraliabhfypcaliforniacanadacoronaviruscoviddonaldtrumpeuropefollowfreedomgermanyindiainstagoodinstagramitalylikelondonlovemagaMake UMKM a New Source of Economic GrowthmemesnewyorkphotographyTraveltrumpunitedstatesusa
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