Potential Digital Economy and Assistance to MSMEs Key to Economic Recovery
Vice Speaker for People’s Welfare of the House Abdul Muhaimin Iskandar. Photo: Jaka/Man
Embracing the potential of digital economy and providing assistance to micro, small, and medium enterprises (MSMEs) would be an essential move to recover the national economy, said Vice Speaker for People’s Welfare of the House, Abdul Muhaimin Iskandar, on Monday (27/7/2020). The forms of assistance would include aspects relating to legal status of business entities, product and packaging improvements, product certification, logistics services, warehouse and consignment, and access to finance or working capital.
“Embracing the potential of digital economy and providing assistance to MSMEs are no less important than other factors,” Iskandar told Parlementaria in a written statement. “Such assistance will allow small businesses to have access to bank services and to use an online system. Only 8 million MSMEs, or 12.5 percent of the total 64 million MSMEs, have access to marketplaces.”
Assistance may also be given through the combination of different government programs, such as Unconditional Cash Transfers (BLT) and Village Funds, to boost household spending. Without the economic stimulus to boost both household and government spending, Iskandar maintained, MSMEs will not be able to restart operations.
The Vice Speaker, who is also known among his local constituents as Gus Ami, called on the government and Indonesian people to give preference to locally made products to support micro, small, and medium enterprises (SMEs). “We support the ‘Proud of Indonesian-Made Products’ movement to give preference to, and purchase, locally made products. This movement will create a ripple effect in which SMEs are able to run and make products that people can afford, and in so doing will drive the entire micro-economy business sector,” said the Chairman of Central Executive Board (DPP) of the National Awakening Party. (eko/es)