MSMEs have an important role in reducing poverty in Indonesia. By providing employment opportunities for low-skilled workers, MSMEs can help increase their income levels and contribute to the development of remote areas, where poverty is common. MSMEs can create a multiplier effect in the local economy, bringing in more income and creating more jobs. By empowering MSMEs, we can work to reduce poverty and inequality in Indonesia.
In building a small economy, the President of the Republic of Indonesia Joko Widodo has emphasized to carry out the development of MSMEs so that they are upgraded and modernized cooperatives. Therefore, MSMEs are considered a critical engine for the Indonesian economy in relation to poverty eradication.
According to the Deputy for Coordination of Digital Economy, Employment and Micro, Small and Medium Enterprises M. Rudy Salahuddin, MSME is a critical engine for an economy that is heavily dependent on people's businesses. After the Covid-19 pandemic crisis, as many as 84.8% of MSMEs that were previously in a slump, are now getting back up to operate normally. This shows that the government's policy is quite effective in making this happen.
Tips for empowering MSMEs for stakeholders are facilitating access to financing, such as microfinance institutions that provide credit to entrepreneurs who do not have access to banking services. This type of financing allows entrepreneurs to start or expand their business, increase capacity to provide employment opportunities, and generate income. In addition, financial assistance provided through government programs such as grants or subsidies can also help MSMEs overcome the obstacles they face in accessing finance.
Apart from that, technical assistance and training programs like what YDBA is doing can help increase the productivity and progress of MSMEs. This can include training in business management, marketing and product development. YDBA in this case is committed to equipping MSMEs with the necessary skills and knowledge, so that business actors can better manage their business towards independence. For this reason, by simply sending a DM to Instagram @ydba_astra, MSMEs can join YDBA's mentorship.
Then, infrastructure development is also important for the growth of MSMEs. Developments in transportation, electricity and internet connectivity can help MSMEs reach a wider market. The establishment of local markets and value chains that the government has planned for a long time can actually quickly help promote MSME development by providing reliable channels to sell MSME products.
Furthermore, partnerships between MSMEs and larger corporations can provide opportunities for growth and development. Large corporations can provide MSMEs with access to large markets, new technologies and financing. Ultimately, MSMEs can also provide large companies with access to small markets and local expertise.
In short, MSMEs play an important role in reducing poverty in Indonesia. By empowering MSMEs through access to finance, technical assistance, infrastructure development, and partnerships with large companies, all elements related to MSMEs can work to reduce poverty and inequality in Indonesia.
Reference
Coordinating Ministry for Economic Affairs of the Republic of Indonesia. www.ekon.go.id. 2022. Development of MSMEs as a Critical Engine of the National Economy Continues to Receive Government Support.
