Govt must prioritize assistance for MSMEs in four sectors: Indef

Jakarta (ANTARA) – The government must prioritize assistance to micro, small and medium enterprises (MSMEs) in four sectors, namely manufacturing, agriculture, tourism, and the creative economy, the Institute for Development of Economy and Finance (Indef ) said.

“These four sectors are essential to be pushed, (but) it does not mean that we do not have to pay attention to other sectors. These four sectors are essential to be pushed to boost MSME productivity”, Deputy Director of Indef, Eko Listiyanto , said in the webinar “Strategies to boost MSME productivity and financing”.

To increase their productivity in the manufacturing sector, MSMEs must become suppliers to large companies so that they can imitate the efficient operational activities of large companies with good product quality standards, he observed.

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“MSMEs in the manufacturing sector must also participate in global production networks to push them to produce more efficiently and competitively,” he said.

In addition, MSMEs in the manufacturing sector need to partner with universities that can help them innovate and increase their entrepreneurial skills.

Manufacturing sector MSMEs, which are export-oriented, must be financed simultaneously with the coaching program, both by banks and the government.

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The productivity of MSMEs in the agriculture sector needs to be increased by providing professional extension workers who can connect farmers with vendors and financial providers.

“The productivity of (MSMEs in) the tourism sector, which is affected by the pandemic, must also be increased by strengthening the confidence of the community to travel again. And, MSMEs in the tourism sector must often be met with the banking sector. ” he remarked.

Meanwhile, MSMEs in the creative economy sector must improve their digital service quality and human resources and integrate research, design and development with the modernization of other sectors, Listiyanto said.

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Financing for creative economy MSMEs can be developed not only through banks, but also crowdfunding, venture capital, and angel investment.

Based on data from Statistics Indonesia (BPS), in 2019, the productivity of MSMEs was only Rp80.13 million per worker per year, or less than the productivity of large businesses, which was Rp1.64 billion per worker per year have achieved

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