Without government intervention, MSMEs cannot compete

Jakarta, CNBC Indonesia – Special Staff to the Minister of Investment/BKPM RI, M Pradana Indraputra, revealed that the government is encouraging Micro, Small and Medium Enterprises (MSMEs) to carry out partnership programs so they can move up in class.

“We are helping with the initiation because if the government does not intervene, MSMEs cannot compete. Moreover, market competition is not only with local entrepreneurs, but also foreign entrepreneurs who do business in Indonesia,” he explained in the Ramadanomics program, Wednesday, (3/4/2024).

On the other hand, Prananda explained, government intervention, especially from BPKM, is not always about capital. However, in the work context, MSMEs are forced to improve their capabilities.

“People think that BPKM gives capital, even though we give them work, so that it can develop and the multiplier effect can be greater,” stressed Prananda.

According to Prananda, the BKPM Ministry is very serious about encouraging the progress of MSMEs. One of them is encouraging collaboration between Large Businesses (UB) and MSMEs.

According to him, this is in accordance with President Joko Widodo's mandate, to create inclusive and sustainable investment.

Apart from that, he said that the Minister of BKPM, Bahlil Lahadalia, had also conveyed a request to the G20 that there be an agreement between state leaders regarding investor partnerships with local businesses.

“This is good news, and an opportunity that when investors enter any country they must partner, and God willing, it will be useful for MSMEs throughout the world,” he explained.

As is known, the role of MSMEs in driving the domestic economy is very large. The MSME sector contributes to Gross Domestic Product (GDP) by 61%, or worth IDR 9,580 trillion, in fact the contribution of MSMEs to employment reaches 97% of the total workforce.

Based on data from the Ministry of Cooperatives and SMEs, Indonesia has 65.5 million MSMEs, which account for 99% of all business units.

[Gambas:Video CNBC]

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