The Institute for Development and Finance (INDEF) was expecting the Government could give special attention to Micro and Small Business (UMKM) net to national economy in time of crisis in the past. The Executive Director of INDEF Enny Sri Hartati stated in Jakarta on Friday (11/9) that UMKM was an enormous business sector which had the power to propel Indonesia’s economic structure. “For that matter, when global economy was losing steam, it is advisable for the global economy was losing steam, it is advisable for the Government to promote UMKM” Enny said.
According to Enny, UMKM could be relied on as propeller of Indonesia’s economy because they did not need foreign currency. Strengthening of USD affected greatly industries using imported products as raw materials or components. The condition of today was different from 1998 and 2008; at that time small business was savior of Indonesia’s economy.
At that time UMKM was using raw materials resources, they were not dependent on import and hardly had any obligations to creditors, so the effect on crisis was ignorable. Unlike the condition of 1998 when Rupiah value was Rp.17.000 per USD the commodity sector was sustainer of Indonesia’s economy.
Enny said that the Government must find a way out for the nation and one the was to strengthen the UMKM sector.
In Indonesia, UMKM had been the backbone of national economy; such was evident in term of worker’s employment, number of players in the industry and contribution to GDP. In terms of employment, UMKM had managed to accommodate 97% or 107.657.509 workers of total workers. The same was in term of business units.
UMKM was able to set up 56.539.560 business units or 99.99%. Compare this with big companies who only managed to set up 0.01% or 4.968 in the same year. Lastly, around 56.6% of GDP was contributed by UMKM.
Various measures had been taken by the Government but it seemed that it not been too fruitful.
Sri states that UMKM was the pillar of national economy. She believed that in every challenge there was opportunity. She would Strives more intensively to build people’s economy based on people’s power among other through UMKM small business.
Sri concluded by saying that self-reliance, creativity and fighting spirit of UMKM kept domestic economy in progress. (SS)
Business New - September 16, 2015