MSMEs become solution to face potential recession: Minister Uno

DENPASAR, Bali (ANTARA) – Minister of Tourism and Creative Economy Sandiaga Salahuddin Uno stated that micro, small and medium-sized enterprises (MSMEs) represent a solution to face the potential global recession forecast for 2023.

“The potential for a recession, an economic slowdown leading to job creation losses and a rise in unemployment are being managed by MSMEs as MSMEs create 97 percent of jobs,” he noted here on Wednesday.

As a form of support, Uno assured that his ministry had prepared several programs.

“We have prepared several programs to anticipate inflation and strengthen supply and facilitate the launch of a transparent distribution chain so that it is simple and fair based on digitization. However, to deal with a potential recession, we rely on MSMEs,” he noted.

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According to the UN, a recession leads to a drop in business activity, which can lead to layoffs. In addition, inflation will cause all prices to rise. Nevertheless, MSMEs can still grow because they quickly find export markets.

He assessed that digital MSMEs’ export programs are a response to the potential recession as export markets are currently growing by 35 to 45 percent.

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“These exports increase the strength of our foreign exchange and open up our enormous employment opportunities. The message from Mr. Jokowi (President) is that we must join hands because we are currently facing inflation. There is a possibility of a recession next year,” he noted.

The minister noted that the exports of Indonesia’s creative economy MSMEs have reached US$25 billion and the number of MSMEs in the country has currently surpassed 64 million.

The ministry has mapped five main markets for Indonesian tourism: Australia, Singapore, Malaysia, India and the UK.

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He expressed optimism that Indonesia can maintain the rhythm of revival and momentum of recovery with the strength of its nature- and culture-based tourism products.

“We aim to reach 5 million (foreign tourist) arrivals next year, and this year (the goal is) 2.5 million (arrivals) of foreign tourists. However, what will really be crucial is our domestic tourists,” Uno stated.

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