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Jokowi Jor-joran Provides Assistance, This is a Note for MSMEs: Okezone Economy

JAKARTA – Micro, small and medium enterprises (MSMEs) are the sectors most affected by the Covid-19 pandemic. To that end, the government has also launched many assistance programs for MSME players, both in the form of credit restructuring and direct cash assistance.

“Our MSMEs do support the economy, but our MSMEs are not competitive. They have no link to the global supply chain,” said Senior Economist and Founder of CORE Indonesia Hendri Saparini in a webinar in Jakarta, Friday (21/8/2020).

Also Read: Jokowi Transfers IDR 2.4 Million to MSMEs Starting Monday 24 August

He said, MSMEs in Indonesia seemed to be in a world of their own, as were big businesses.

“When talking about the linkage of large and small businesses, in other countries the linkage is very high, but in Indonesia it is only 18-19%, this indicates that there is almost no relationship between large and small businesses,” explained Hendri.

Also Read: Can MSMEs Resurrect from Covid-19? This said the boss of BRI


According to him, this is due to the design of government policies. There is a strategy to strengthen UMKM, but it is not accompanied by a strategy of integrating UMKM into the national economic grand strategy.

“The raw materials used by both MSMEs and large businesses are imported together because large linkages are not made. If we take the example of Japan, the automotive industry uses thousands of MSMEs to become a supporting industry,” he added.

He said, in Indonesia there are large BUMNs that should be able to defend UMKM. “But now BUMN TKDN is also very low, they are very dependent on imported suppliers. This must also be considered, especially that MSMEs are also needed to strengthen industrial structures,” concluded Hendri.

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