NUSADAILY.COM – JAKARTA – Vice Chairman of Commission VI of the House of Representatives Aria Bima emphasized the role of the Revolving Fund Management Institution of Small and Medium Micro Enterprises Cooperatives (LPDB-KUMKM) as well as state-owned enterprises in the field of capital to provide the right formulation and can help MSMEs.
“Our GDP is the largest of MSMEs, which is above 51 percent. So we emphasize the role of LPDB, the role of civil capital then the role of pawnshops, the role of other himbara banks, including the Ministry of Cooperatives and SMEs and the Ministry of SOEs, including KPPU so that the economic size for MSMEs both financial sector and market sector is not an obstacle in the recovery process of the impact of this pandemic,” said Aria Bima in a written statement received in Jakarta, Monday.
According to him, MSME capital is different between fixed capital and working capital. He asked that a varied capital formula be sought, considering that if there is a bottleneck in fixed capital, then the bank or the financier must prepare a concrete settlement scenario for the working capital.
MSMEs are the main support for Indonesia’s Gross Domestic Product (GDP) with a percentage of 51 percent, but are now affected by the COVID-19 pandemic.
“I strongly believe that with meetings like this include optimizing the supervision of Commission VI on MSMEs. Both budget issues, concerning state-owned enterprises and commercial banking, will make the status of MSMEs scenarios able to navigate in the current and post-pandemic situations. So that our GDP, whose main passenger is MSMEs, does not experience an obstacle which is still minus,” he said.
Previously, the results of a survey conducted by PT Bank Rakyat Indonesia (BRI) Tbk showed MSMEs remain optimistic despite the challenges of economic recovery after contracting due to the pandemic.
MSME Business Activities
The results of the BRI UMKM Business Activity Survey in the fourth quarter of 2020 indicate that MSME business activity decreased slightly compared to the previous quarter. This is reflected in the BRI Micro &SME Index (BMSI) which decreased from 84.2 in the third quarter to 81.5 in the fourth quarter of 2020.
Nevertheless, MSMEs remain optimistic towards the first quarter of 2021 as demonstrated by BMSI expectations that remain above the 100 threshold.
In this survey BRI obtained interesting findings, although the assessment of MSMEs on the economy in general decreased, it turns out that the assessment of the government’s performance remains high. This was seen in the increase in the index of business confidence (IKP) of MSMEs to the government in the fourth quarter of 2020 to the level of 136.3 from the level of 126.8 in the previous quarter. (lal)